During the multi-day forum, we engaged in in-depth discussions with numerous local Japanese enterprises and international institutions regarding identity verification, Anti-Money Laundering (AML), anti-fraud, and Travel Rule compliance practices. As Japanese companies accelerate their global expansion and embrace digital assets and cross-border business scenarios, building a compliance and risk control system that covers the “full user lifecycle” has become an unavoidable core topic.

Three Major Challenges: Rising Compliance Pressure for Japanese Enterprises

In our deep exchanges with local Japanese companies and international organizations, compliance and risk control issues were frequently raised. As business models become increasingly complex, the Japanese market is facing more diverse and practical challenges in constructing identity verification, AML, and anti-fraud systems.

1. Multi-jurisdictional compliance pressure from cross-border expansion

Whether in digital banking, cross-border payments, or crypto asset trading platforms, enterprises expanding into global markets must simultaneously meet KYC/KYB, AML, and data compliance requirements across different countries. Traditional fragmented supplier models often lead to disjointed processes, complex auditing, and high system integration costs.

2. Increasingly complex fraud forms make manual review unsustainable

With the rise of Deepfakes, synthetic identity fraud, and account takeover attacks, relying solely on manual review is no longer effective for risk identification. Enterprises must ensure a smooth user experience while completing precise risk control in sub-second decision-making, placing higher demands on technical capabilities.

3. Increased difficulty in implementing Travel Rule compliance for digital assets

In business scenarios related to digital assets and Virtual Asset Service Providers (VASPs), the implementation of the Travel Rule has become a compliance priority. However, at the operational level, how to accurately identify VASP counterparties, achieve data interoperability between different protocols, and establish a complete and traceable audit trail remains a practical challenge for many platform compliance teams.

One-Stop Verification Platform: A Compliance Framework Covering the Full User Journey

To address these challenges, Sumsub provides a unified verification platform to secure the whole user journey, integrating compliance capabilities for “any country, any check, one unified workflow.”

1. Globally covered KYC / KYB capabilities

In the context of continuous cross-border expansion, enterprises need an identity verification system with true global coverage, rather than a solution limited to a single country or specific ID types. Addressing this need, Sumsub offers standardized and efficient global verification capabilities:

• Support for 220+ countries and territories
• Processing of 14,000+ ID types
• Average verification time < 30 seconds

Regardless of the document’s language, layout, or issuing country, the system achieves automatic identification and validation, ensuring a consistent experience for cross-regional business. It also supports Proof of Address (PoA database cross-matching), precise age verification, and “document-free verification” in certain countries (confirming identity via ID numbers or bank/government apps) to strike a balance between compliance and user experience.

For business entities, Sumsub can complete Business Verification (KYB) within 3 hours, verifying UBOs, corporate structures, and registration information, significantly improving the efficiency of B2B onboarding and corporate account opening.

2. Real-time Transaction Monitoring and Anti-Fraud capabilities

Sumsub’s Transaction Monitoring and Fraud Prevention modules build a 24/7 real-time risk control system:

• Identification of chargeback fraud, credit card theft, and account takeover behavior
• Anomaly detection based on AI pattern analysis
• Built-in database of 2 million+ known fraudsters
• Analysis of 5,000+ fraud samples daily

Combining Device Intelligence, Behavioral Fraud Detection, and Face Authentication, the platform achieves risk control throughout the entire process—from registration and login to transactions.

3. Travel Rule Compliance: One-Stop Cross-Protocol Interoperability

For digital asset enterprises most concerned with Travel Rule compliance, Sumsub provides a complete compliance technical framework:

• Covers timeliness and data scope requirements of FATF Travel Rule recommendations
• Supports small-value transfers, high-frequency transactions, instant data submission, and compliance record keeping
• Integrated with 1800+ VASPs, connecting to mainstream protocols like GTR, TRP, CODE, and Sygna
• Single integration provides access to multiple protocols, enhancing interoperability

Its “Risk-based approach” mechanism allows for secure data exchange and risk scoring for non-Travel Rule transactions, assisting compliance officers in making precise judgments.

Through a No-code Rules Engine and automated task assignment, enterprises can achieve 1-click Compliance while maintaining a full audit trail, simplifying regulatory inspections and internal audit processes.

4. Full-Cycle Configurable Compliance Orchestration

Sumsub provides more than just point-to-point functions; it emphasizes Onboarding Orchestration and Ongoing Monitoring:

• AML Screening
• Continuous Transaction Monitoring
• Duplicate Identity Detection
• PEP and Sanctions List Screening
• Risk Scoring and Automated Decision-making

Enterprises can customize rule systems based on their own risk appetite, achieving scalable expansion without increasing the burden on compliance teams.

Currently, Sumsub serves over 4,000 corporate clients worldwide across sectors like payments, digital banking, crypto assets, and cross-border e-commerce, including bitwallet, dtcpay, PingPong, Mercuryo, Bitazza, Bitget, The Kingdom Bank, and Jeton.

VizEx × Sumsub: Building Global Compliance and Risk Control Capabilities Together

The in-depth exchanges at GFTN Japan 2026 further confirmed that in the context of tightening global regulations and rapid digital business growth, compliance and risk control capabilities have become critical infrastructure for international competition.

As a partner of Sumsub, VizEx will leverage its base in Japan to reach the APAC region and the global market. Together with Sumsub, we will provide enterprises with full-process support covering consulting, system integration, and continuous optimization, helping companies achieve unified compliance management and scalable risk control upgrades across different jurisdictions.

In the future, VizEx will continue to deepen its cooperation with Sumsub, helping enterprises accelerate global market expansion while ensuring compliance and security, achieving secure growth and long-term value creation.

👉 If your enterprise is expanding into Singapore or Southeast Asian markets and facing challenges in KYC, AML compliance, or anti-fraud, feel free to connect with DKMECO to learn how Sumsub solutions can adapt to your business scenarios.

The post Highlights: VizEx × Sumsub at GFTN Japan 2026, Empowering Enterprises to Enhance Global Compliance and Risk Management first appeared on DKM Ecosystem.

Among the 20 top vendors evaluated worldwide, Sumsub was strongly recognized as a “Leader,” thanks to its outstanding strategic vision and product capabilities.

Based on 15 rigorous criteria, the report provides a comprehensive evaluation of industry frontrunners—from company strategy and product capabilities to real customer feedback. Standing out among many strong competitors, Sumsub’s recognition as a Leader marks the highest level of independent third-party validation of its leadership in digital trust and anti-fraud.

Top Scores Demonstrate Hard-Core Strength

This evaluation covered multiple key dimensions. Notably, Sumsub achieved the highest scores in half of the strategy criteria—precisely the areas that represent the core competitive strengths of today’s identity verification solutions:

• ✅ Business verification (KYB)
• ✅ Case management
• ✅ Email- and paper-based identity verification
• ✅ Public-record-based verification
• ✅ Innovation, vision, and partner ecosystem

These results not only demonstrate the breadth and depth of Sumsub’s solutions, but also highlight its unique advantages in addressing complex business environments and high-level fraud challenges.

Why Was Sumsub Named a “Leader”?

The Forrester report provides an in-depth analysis of Sumsub’s success factors, revealing three key pillars behind its industry leadership:

》Forward-Looking Strategic Vision

Sumsub has built an exceptional vision centered on AI-driven anti-fraud investigation algorithms, physical identity verification, no-code workflows, and intelligent case management.

With a consistently customer-centric innovation approach, Sumsub continues to optimize applications across multiple verticals, including finance and technology. Its clear product roadmap and strong partner ecosystem keep its strategic foresight at the forefront of the industry.

》Comprehensive and Leading Technical Capabilities

• Highly configurable: Administrative permission settings stand out, supporting custom roles and flexible associations, giving customers a high degree of autonomy.
• Outstanding verification capabilities: Sumsub excels in public-record and physical document verification, ensuring data authenticity through integrations with government data sources. Its ability to verify non-ID documents and proof of address gives it a distinct advantage in business verification services.
• Advanced technology protection: In key differentiating technologies such as deepfake detection, phone number verification, and behavioral biometrics, Sumsub meets industry-leading standards, effectively countering increasingly sophisticated fraud methods.

》Continuous Innovation and Global Expansion

In 2025, Sumsub launched a reusable digital identity product suite, expanded non-document verification solutions, and upgraded AI-driven case management tools for real-time financial crime investigations. At the same time, its continuously expanding global coverage provides seamless support for customers operating internationally.

Customer Recognition and Market Adoption

The Forrester report notes that Sumsub’s users highly praise the platform’s configurability. It also identifies Sumsub as particularly well suited for organizations with stringent business verification requirements and a strong focus on both physical ID and non-ID document verification.

Over the past decade, Sumsub has provided more than 4,000 organizations worldwide with end-to-end anti-fraud identity verification solutions covering account creation, verification, login, transactions, and account closure. Its modular design enables tailored solutions to meet diverse customer needs.

About the Forrester Wave™ Evaluation

The Forrester Wave™ is a globally recognized evaluation framework that provides authoritative guidance for enterprise technology procurement through systematic research, analysis, and scoring.

This identity verification solutions evaluation selected the 20 most influential vendors in the industry and assessed them across three core dimensions—current product capabilities, strategy, and customer feedback—classifying vendors into Leaders, Strong Performers, and Contenders.

In an era where digital identity fraud methods continue to evolve, choosing a strong, reliable, and forward-looking identity verification partner is more critical than ever.

As Sumsub’s Asia-Pacific partner, Youyueda (DKMECO) remains committed to introducing world-leading identity verification solutions to enterprise customers, helping them achieve secure compliance and sustainable growth.

As demonstrated by Sumsub’s outstanding performance in the Forrester Wave™, this recognition is not only an honor, but also clear proof of its technical strength and market leadership. Partnering with Youyueda and Sumsub means choosing to move forward alongside an industry leader—together building a safer, more trustworthy digital future.

The post Sumsub Recognized as a Forrester Leader, Leading the Identity Verification Wave in 2025 first appeared on DKM Ecosystem.

Sumsub is a technology service company providing global identity verification and compliance risk control solutions. It offers enterprise clients a “full-cycle verification platform” that includes KYC (Know Your Customer), AML (Anti-Money Laundering), transaction monitoring, fraud prevention, Travel Rule, and more. The platform is designed to cover user verification, business verification, transaction monitoring, fraud detection, and compliance management needs with just one verification system.

Sumsub covers over 220 countries and regions and processes more than 1 billion identity records. Its pass rate within mainland China reaches approximately 95.3%, offers full Chinese support, and can complete identity verification for users from any country/region in as fast as 30 seconds. The company provides integration methods such as Web SDK, Mobile SDK, RESTful API, or Unilink (guiding users via QR code/link), and its platform uptime reaches 99.996%.

Core Functions

User Verification: Supports multi-dimensional verification services such as ID verification, address verification, liveness detection (facial recognition), and AML screening. The interface supports over 40 languages.

Business Verification & Transaction Monitoring: Supports identity and compliance background checks for corporate clients, while also performing real-time transaction behavior monitoring and generating Suspicious Activity Reports (SAR).

Fraud Prevention: Analyzes over 330,000 fraud samples monthly, effectively helping enterprises identify and block new types of fraudulent activities.

Technical Integration & Flow Orchestration: Orchestrate identity verification checks at any stage of the customer journey without writing code. Supports global multi-language, multi-format document verification (over 14,000 document types and multi-language support).

Application Scenarios

Sumsub’s services are applicable to industries such as FinTech, digital payments, cryptocurrency exchanges, e-commerce platforms, the sharing economy, online gaming, and mobility. Through its global identity verification and risk control capabilities, it helps enterprises achieve compliant operations, risk control, and enhanced user trust.

Effectiveness and Advantages

According to a Total Economic Impact (TEI) study commissioned by Forrester Consulting, companies using the Sumsub verification platform achieved an ROI of approximately 240%. Its identity verification platform supports 220+ countries/regions globally, with an average verification pass rate exceeding 90%.

As Sumsub’s official partner (authorized distributor), DKM ECO is dedicated to providing users with comprehensive product consultation, delivery, deployment, and technical support services. To learn more or purchase Sumsub products, please contact us. Email: dkminfo@dkmeco.com, 400 Toll-Free: 400 998 0226 .

About DKM ECO

DKM ECO, founded in 2012, is dedicated to promoting world-leading innovative technology solutions, helping enterprises achieve digital upgrades and market growth layouts globally. Leveraging professional technical capabilities and rich international experience, we continuously provide clients with integrated support from global branding, business expansion, to technology ecosystem construction, helping enterprises achieve sustained growth and systematic competitive advantages in cross-border operations.

Currently, the company’s business covers more than 20 core cities and surrounding areas, including Singapore, San Francisco, Tokyo, Hong Kong, Sydney, Manila, Kuala Lumpur, Bangkok, Jakarta, Ho Chi Minh, Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou, and will continue to enter more regional markets.

The DKM ECO team possesses multi-language, multi-brand, and multi-team collaboration capabilities. Based on a modern technology stack including cloud computing, SaaS, BI, big data, and generative AI, we continuously build an “enterprise global growth ecosystem,” empowering enterprises to achieve truly data-driven decision-making and intelligent growth in international operations.

The post Sumsub Official Partner, Sumsub China Distributor first appeared on DKM Ecosystem.

Against this backdrop, global leading verification platform Sumsub has deepened its strategic cooperation with top data service provider DKM ECO in the Asia-Pacific region. Together, they are offering innovative solutions for financial institutions to address compliance challenges through the “Comply to Fortify 2.0” Asia-Pacific Roadshow.

Asia-Pacific Fintech Faces Severe Challenges

According to Sumsub’s global verification data (Q1 2024 – Q1 2025):

01. Hong Kong fintech fraud cases have surged by 234%
02. Mainland China’s fraud growth rate reached 2390%
03. 76% of fraud occurs after users pass initial verification

This data reveals that traditional entry checks are no longer sufficient to combat AI-driven professional fraud networks. Financial institutions urgently need to establish risk management systems that cover the entire user lifecycle.

Setting a New Benchmark for Compliance in Asia-Pacific

Sumsub and DKM ECO’s strategic collaboration focuses on three core values:

01. Agile Response
Adapting dynamically to the latest requirements from regulatory bodies such as the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC).

02. Full Lifecycle Protection
A one-stop verification platform from KYC to continuous transaction monitoring.

03. Seamless Implementation
Successfully empowering fintech and Web3 businesses in Hong Kong, Mainland China, Singapore, and the Philippines.

“Compliance is no longer optional; it is the cornerstone of business survival,” emphasized Penny Chai, Vice President of Sumsub Asia-Pacific. “Our cooperation with DKM ECO is aimed at providing financial institutions with solutions aligned with the Greater Bay Area and Asia’s regulatory vision.”

Roadshow Highlights: Practical Guides + Technical Demos

The Hong Kong stop of the Asia-Pacific Partner Roadshow attracted representatives from financial institutions, virtual banks, and cryptocurrency firms. Key highlights included:

“Practical Guide to Virtual Bank/Crypto License Applications in Hong Kong”:
Revealing key points for regulatory approval.

Best Practices for AML/CFT under HKMA Framework:
Compliance operations and case analysis.

AI Deepfake Detection Demo:
Live demo of “face-swap” fraud detection.

Zmark Zheng, Senior Digital Consultant at DKM ECO, stated, “By integrating Sumsub’s verification technology with our data service network, businesses can achieve global compliance at a lower cost.”

November 2025: Global Anti-Fraud Summit in Singapore

As a pioneer in the anti-fraud field, Sumsub will host the inaugural What the Fraud Summit in Singapore on November 19-20, 2025, at the Andaz Hotel, gathering global digital trust experts to tackle the “fraud epidemic.”

👉 Don’t forget to follow the Sumsub Official WeChat for the latest summit updates!

In an era of increasingly sophisticated fraud methods, Sumsub provides Asia-Pacific financial institutions with a complete solution from compliance to risk control through technological innovation and ecosystem cooperation.

The Hong Kong stop of the roadshow is just the beginning. Moving forward, Sumsub will continue to deepen its presence in the Asia-Pacific market and help build a safer, more trusted digital financial environment.

The post Asia-Pacific Partner Roadshow Hong Kong: Sumsub and DKM ECO Strengthen Compliance Defense Together first appeared on DKM Ecosystem.

The Benchmark of the Identity Verification Industry

As one of the world’s most influential technology market research models, the Gartner Magic Quadrant for Identity Verification (IDV) report evaluates leading global identity verification providers annually across two core dimensions: “Ability to Execute” and “Completeness of Vision.”

This year’s report covered 11 representative IDV vendors worldwide. Being placed in the “Leader” quadrant signifies that a company excels in product technology, market maturity, customer reputation, and long-term strategic vision.

Sumsub not only stood out in terms of technology and market coverage but also ranked at the forefront in “Completeness of Vision.” This demonstrates that its platform features and solutions not only meet enterprises’ current digital compliance needs but also have the potential to lead the future development of the identity verification industry.

Sumsub Continues to Lead Industry Innovation

Gartner highlighted several advantages of Sumsub’s one-stop identity verification platform:

01 Global Reach and Strong Compliance

Sumsub has a diversified global customer base, widely serving highly regulated industries such as finance, cryptocurrency, payments, overseas technology, and gaming. Its solutions support mainstream identity document types, eID (electronic identity), and offer multilingual interfaces to meet regional compliance requirements.

Additionally, Sumsub integrates deeply with numerous authoritative data sources, significantly enhancing the efficiency and security of identity verification.

02 Technological Innovation: Non-Documentary Verification & Reusable KYC

Sumsub introduced its Non-Documentary Identity Verification (Non-Documentary IDV) solution, which connects with government eIDs and authoritative data sources, enabling high-security identity authentication without requiring users to upload any physical or digital documents. This innovation not only lowers the user barrier but also helps enterprises achieve local compliance in remote onboarding and digital finance scenarios.

In addition, the “Sumsub ID” mechanism allows users who have completed verification with Sumsub once to reuse their results across the Sumsub network of partner companies. This greatly improves the end-user experience while reducing redundant verification and data collection costs for businesses.

03 End-to-End Intelligent Fraud Prevention & Automated Compliance

The Sumsub platform integrates tools such as liveness detection, facial recognition, device fingerprinting, geolocation checks, video interviews, and global watchlist screening. It provides enterprises with one-stop KYC/KYB/AML/transaction monitoring capabilities to meet stringent compliance and risk management requirements. Moreover, it continuously introduces automation tools to help companies effectively address increasingly complex financial crime and regulatory challenges.

04 Easy Operations and Data Security

Sumsub provides enterprises with comprehensive backend management, audit trails, and data analytics reports. It supports customizable data retention periods and adapts flexibly to global privacy regulations such as GDPR. The platform also features multi-level permission management and secure data segregation to ensure the safety and compliance of sensitive data.

Industry Influence and Future Outlook

With its robust identity verification capabilities and global compliance network, Sumsub has already empowered thousands of enterprise clients across fintech, cryptocurrency, payments, and digital banking sectors.

Since 2024, Sumsub has been deepening its partnerships with governments and authoritative data sources worldwide, continually expanding localized verification capabilities. Looking ahead, Sumsub will further support new eID technologies and localized digital identities (such as mDL mobile driver’s licenses) while introducing automated AML (anti-money laundering) investigation tools to enhance intelligent compliance management and operational efficiency for enterprises.

As its Asia-Pacific partner, DKM believes that Sumsub’s consecutive recognition as a Gartner Magic Quadrant™ Leader not only represents strong recognition from global authorities and industry clients but also highlights its continued leadership in the identity verification and compliance technology sector. Congratulations to Sumsub!

In the future, we look forward to working with more enterprise clients and industry partners to drive innovation in intelligent compliance and digital identity, empowering the sustainable growth of the digital economy in Asia-Pacific and worldwide.

The post Sumsub Named a Leader in the Gartner® Magic Quadrant™ for Identity Verification for the Second Consecutive Year first appeared on DKM Ecosystem.

Beyond regulatory policy advancement, numerous companies in the market have already begun active deployment: local payment institutions are submitting stablecoin pilot programs, major Chinese fintech companies are reportedly exploring the issuance of Hong Kong Dollar or offshore RMB stablecoins in Hong Kong, while some licensed virtual asset trading platforms are preemptively building compliance capabilities to seize future market opportunities.

With the Stablecoins Ordinance officially taking effect on August 1, 2025, Hong Kong has not only established a statutory regulatory framework for stablecoins but also clarified their important position as payment tools and financial infrastructure. In this new competition, “compliance” will become the key threshold for successful stablecoin implementation.

Development Timeline of Hong Kong’s Stablecoin Policy

Hong Kong’s focus on stablecoins was not achieved overnight, but through gradual regulatory exploration.

• As early as 2022, the Hong Kong Monetary Authority (HKMA) published the Discussion Paper on Crypto-assets and Stablecoins, pointing out potential risks from stablecoins including opaque reserves, uncontrolled cross-border capital flows, and money laundering and terrorist financing risks.
• Between 2023-2024, Hong Kong further proposed that stablecoins must operate under a licensing system, requiring safe reserve assets, transparent governance structures, and AML/CFT anti-money laundering compliance measures.
• Finally, in May 2025, Hong Kong’s Legislative Council passed the Stablecoins Ordinance, establishing a statutory stablecoin issuance business licensing system.
• In July of the same year, HKMA released detailed implementation rules covering KYC/KYB, AML, Travel Rule, risk management and continuous disclosure requirements, and stated at a press conference: The first batch of stablecoin licenses is expected to be issued in early 2026.

It can be seen that Hong Kong has chosen a path of “establishing rules first, then releasing business,” creating an ecosystem for stablecoins that balances innovation with compliance, also gaining first-mover advantage in global virtual asset competition.

Market and Compliance Challenges: The Greatest Challenge for Stablecoin Implementation

The core value of stablecoins lies in cross-border payments, retail settlements, and trade finance, but this also makes them more likely to become tools for money laundering, underground currency exchange, and sanctions evasion. Compared to traditional virtual assets, stablecoins are closely pegged to fiat currencies, making compliance more challenging.

As M Sivakumar, APAC Legal & Regulatory Affairs Director at Sumsub, pointed out in an interview with Hong Kong media “Hong Kong Economic Journal”:

“Stablecoins have enormous application potential, capable of improving cross-chain capital flow efficiency and supporting more flexible payment and settlement models. However, at the same time, anonymous non-custodial or self-custodial wallets may also bring risks such as layering and high-speed money laundering. Financial institutions must adopt strict due diligence, using methods such as real-time wallet risk scoring and behavioral analysis to detect wallets related to mixers, dark web markets, or sanctioned addresses before transaction execution, thereby effectively reducing risks.”

He also reminded that cross-border transfers must strictly comply with FATF Travel Rule, meeting regulatory requirements through automated data transmission and transaction screening. This is not only a hard threshold under Hong Kong’s stablecoin licensing system but also key to whether enterprises can operate legally in global markets.

On the other hand, privacy and “decentralization” are also core issues of external concern. Hong Kong media “Sing Tao Daily” pointed out that every stablecoin transaction is recorded on public blockchains. Although it doesn’t directly show users’ real identities, once wallet addresses are linked to personal identities, privacy risks may arise. Meanwhile, whether regulated stablecoins deviate from the “decentralization” concept has also become a hot topic of discussion.**

To this, M Sivakumar emphasized:”Regulated stablecoins represent a ‘hybrid model’ that can leverage operational efficiency from decentralized infrastructure while building market trust and stability through regulatory compliance.”

In other words, the future of stablecoins lies not in “absolute decentralization” but in finding balance between transparency, compliance, and efficiency. Combined with clear requirements in HKMA’s “Implementation Rules for Stablecoin Regulatory System,” stablecoin issuers and related service providers must:

• Conduct user and business identity verification (KYC/KYB) and perform continuous due diligence;
• Establish real-time transaction monitoring and risk management systems to identify money mule networks and abnormal transaction chains;
• Comply with FATF Travel Rule requirements, transmitting necessary identity and transaction data in cross-border transfers;
• Regularly conduct risk reviews and submit suspicious transaction reports (STRs) to regulatory authorities, maintaining continuous compliance.

How Sumsub Assists Stablecoin Ecosystem Compliance

As a global leading compliance and verification solution provider, Sumsub has provided full-chain compliance capabilities for virtual asset exchanges, payment companies, and fintech platforms, highly aligned with Hong Kong’s new stablecoin policy.

#1 Global KYC/KYB Identity Verification

Sumsub supports 220+ countries and regions, capable of processing 14,000+ identity documents and multilingual verification processes. Combined with liveness detection, biometric recognition, and database comparison, it helps stablecoin companies quickly identify user and business identities, reducing risks of fraudulent account opening and fraud. This directly corresponds to Hong Kong licensing system’s strict requirement for “traceable real identity.”

Image source: Sumsub

#2 Travel Rule and Cross-border Compliance Interoperability

Sumsub’s Travel Rule Hub has connected to 1800+ VASP networks and supports multiple mainstream protocols including TRP, Sumsub Protocol, GTR, CODE, Sygna, while equipped with email notification tools to ensure smooth information transmission even when counterparty VASPs use incompatible protocols.

This means that through multi-protocol compatibility, Sumsub enables stablecoins to seamlessly carry identity and transaction information during cross-border flows, automatically attaching “identity tags” and “transaction descriptions” like international remittances, thereby meeting FATF international compliance requirements and satisfying Hong Kong’s latest regulatory standards for anti-money laundering and counter-terrorism financing. For Hong Kong’s future cross-border payments and stablecoin clearing, this capability is indispensable compliance infrastructure.

Image source: Sumsub

#3 Risk Monitoring and Continuous Compliance

Sumsub has built-in AML monitoring and list screening (covering global sanctions lists, PEP, Adverse Media), combined with AI risk engines, transaction behavioral analysis, and device fingerprinting technology, capable of real-time identification of money mule networks, abnormal chains, or suspicious transactions. The platform also supports automatic STR (suspicious transaction report) generation, helping stablecoin service providers directly interface with Hong Kong and global regulatory requirements.

Image source: Sumsub

#4 Scalable Integrated Compliance Platform

Beyond identity verification and transaction monitoring, Sumsub also provides configurable onboarding flow tools (Onboarding Flow Builder), customizable risk scoring rules, and KYB penetrative due diligence for enterprises (Ultimate Beneficial Owner verification). This means enterprises don’t need to piece together multiple suppliers but can meet stablecoin full lifecycle compliance requirements through one unified platform.

Image source: Sumsub

Through these capabilities, Sumsub not only helps enterprises quickly “pass licensing thresholds” but also helps build long-term solid compliance moats in Hong Kong, laying a secure foundation for stablecoin applications in cross-border payments, retail finance, and trade finance scenarios.

👉 To learn more about platform capabilities, please register for the webinar held on August 13 (next Wednesday) through DKM expert demonstrations and explanations, experiencing up-close Sumsub’s innovative applications and operational processes in KYC, AML, cross-border anti-fraud, and virtual asset compliance scenarios.

International Perspective: Differences Between HK, SG, and EU MiCA

It’s worth noting that Hong Kong’s stablecoin regulatory path has both similarities and differences with major markets like Singapore and the EU.

– In Singapore, the Monetary Authority of Singapore (MAS) proposed a stablecoin regulatory framework in 2022 and released final rules in 2023, requiring single-currency stablecoins (such as those pegged to USD or SGD) to have 100% high-liquidity reserves, clear redemption mechanisms, and strict capital requirements. This is highly consistent with Hong Kong’s emphasis on “reserve transparency + AML compliance” requirements, but Singapore completed implementation earlier.

– In the EU, MiCA (Markets in Crypto-Assets Regulation) which officially took effect in 2024 established unified EU-wide rules for stablecoins (especially “Electronic Money Tokens” EMTs and “Asset-Referenced Tokens” ARTs), covering licensing, capital, transparency, and consumer protection requirements. This makes the EU currently the most systematized stablecoin regulatory market globally.

– In comparison, Hong Kong’s advantage lies in backing from the Chinese market, gradual policy tightening pace, and dual linkage of financial infrastructure with virtual asset ecosystems. It can be said that Hong Kong hopes to find a “flexible but constrained” regulatory balance path between Singapore’s “first implementation” and the EU’s “systematic governance.”

This means enterprises issuing or operating stablecoins in Hong Kong need to balance local compliance requirements while drawing from Singapore and EU standards to achieve cross-border compatibility and broader market expansion in the future.

Outlook: Compliance as Core Driving Force for Stablecoin Development

It’s expected that by 2026, Hong Kong will welcome the issuance of its first batch of legal stablecoins. This will promote the development of digital payments, cross-border settlements, and financial innovation, potentially becoming an important breakthrough for Hong Kong to reshape its international financial competitiveness. With the implementation of the Stablecoins Ordinance, Hong Kong’s stablecoin ecosystem will move toward a clearer, more mature regulatory framework.

Sumsub APAC Legal & Regulatory Affairs Director M Sivakumar also emphasized:”As stablecoins become increasingly mature, their application scenarios have expanded to more industries, no longer limited to virtual asset trading platforms. Different industries should deploy compliance infrastructure early, focusing on compliance risks and regulatory requirements including identity verification, transaction monitoring, and AI fraud, achieving faster and lower-cost capital flows through stablecoins.”

For enterprises, choosing Sumsub as a compliance partner is not only a necessary condition for meeting policies but also a strategic choice for winning the future.

As Sumsub’s important partner in the Asia-Pacific region, DKM is also helping enterprises in Hong Kong and the region better achieve compliance implementation. From compliance solution integration, localized operations to industry practice sharing, DKM will continue to work with Sumsub to build compliance bridges that meet both international standards and local environments for enterprises.

Thus, enterprises can not only rely on Sumsub’s global technology platform to meet the strictest regulatory requirements but also accelerate compliance implementation and business expansion through DKM’s local support, jointly seizing major opportunities brought by Hong Kong’s new stablecoin policy.

👉 To learn more about platform capabilities, please register for the webinar held on August 13 (Wednesday), experiencing up-close Sumsub’s innovative applications and operational processes in KYC, AML, cross-border anti-fraud, and virtual asset compliance scenarios through DKM expert demonstrations and explanations.

References

• HKMA. Discussion Paper on Crypto-assets and Stablecoins (2022)
• HKMA. Press Release on Stablecoin Regulatory Regime (2025-07-29)
• MAS. Requirements for Stablecoin Issuers (2023)
• European Parliament. Markets in Crypto-Assets (MiCA) Regulation (2023)

• Reuters. Hong Kong passes stablecoin bill, one step closer to issuance (2025-05-21)
• Reuters. First Hong Kong stablecoin licences may be issued early next year, HKMA says (2025-07-29)
• Reuters. China’s tech giants lobby for offshore yuan stablecoin, sources say (2025-07-03)

• Hong Kong Economic Journal. Sumsub: Stablecoins Hold Great Potential, But Financial Institutions Must Guard Against AML Risks (2025-07-29)
• Sing Tao Daily. Are Stablecoins’ Public Ledgers a Threat to Privacy? Debate Over Decentralization Under Supervision (2025-07-22)
• Infocast / 匯港通訊. Sumsub: As Stablecoins Mature, Their Applications Expand Across Industries (2025-07-29)

• Sumsub. Travel Rule Solution Overview
• Sumsub. Crypto Regulations and Compliance Blog
• Sumsub. Crypto Travel Rule Protocols: How They Work and What to Choose

The post The new stablecoin regulations take effect in HK — how can Sumsub help businesses seize the compliance advantage? first appeared on DKM Ecosystem.

Hong Kong – July 3, 2025 – Sumsub, a global verification leader, joins hands with DKM ECO, a leading data services provider in the Asia-Pacific region, to stage an APAC Roadshow “Comply to fortify 2.0” in Hong Kong to share with businesses on how innovative solutions can address their most pressing compliance challenges. This initiative forms part of the broader strategic partnership unveiled by Sumsub and DKM ECO, focused on building a more secure and resilient business ecosystem through enhancing financial crime prevention efforts and staying ahead of evolving compliance updates in Hong Kong and beyond.

Sumsub’s latest internal data* reveals that APAC’s fintech industry faces an escalating threat of fraud in Q1 2025, with the fraud rate in Hong Kong increasing by 234% year-over-year. The fintech industry in Mainland China is experiencing an even higher surge, with fraud rates up by 2390% year-over-year, highlighting the critical need for effective fraud prevention measures.

Providing businesses with tailored guidance to unlock the value of Sumsub’s full-cycle verification platform, the partnership between Sumsub and DKM ECO focuses on supporting clients through process transformation and seamless integration. Together, they have already empowered organizations across Hong Kong, Mainland China, Singapore, and the Philippines—ranging from fintech to Web3. With Vietnam as the next launchpad, the partnership is unlocking new possibilities for compliance and security across Asia.

“With regulatory expectations intensifying across Hong Kong, the Greater Bay Area, and Asia as a whole, fintechs are under increasing pressure to meet stringent AML, fraud prevention, and data protection standards,” said Penny Chai, Vice President, APAC, Sumsub. “From evolving AML regulations to the rise of AI-driven fraud, compliance is no longer optional—it’s foundational. With 76% of fraud occurring after onboarding, fintechs need robust, scalable verification systems that go beyond initial checks to ensure continuous compliance and risk mitigation. Our partnership with DKM ECO reflects our shared commitment to equipping financial institutions with the tools they need to thrive in this complex environment, while supporting the region’s vision for a secure and innovative financial ecosystem.”

“As we remain committed to delivering world-class technology solutions that empower businesses to expand globally, we are pleased to partner with Sumsub to address key compliance challenges in Hong Kong and across the APAC region. This collaboration underscores our strategic focus on advancing industrial applications and driving innovation within the global big data ecosystem,” said Zmark Zheng, Senior Digital Advisor, DKM ECO.

Sumsub’s APAC Roadshow in Hong Kong is designed to equip fintechs, crypto firms, and virtual banks in the city and beyond with essential knowledge on licenses and regulatory requirements. Institutions will gain critical perspectives shaped by key bodies such as the Hong Kong Monetary Authority and the Securities and Futures Commissions to prepare for tomorrow’s environment.

*Based on Sumsub’s internal statistics, drawn from millions of identity verification checks conducted globally between Q1 2024 and Q1 2025.

About Sumsub

Sumsub is a full-cycle verification platform that secures the whole user journey. With Sumsub’s customizable KYC, KYB, Transaction Monitoring, and Fraud Prevention solutions, you can orchestrate your verification process, welcome more customers worldwide, meet compliance requirements, reduce costs, and protect your business.

Sumsub has over 4,000 clients across the fintech, crypto, transportation, trading, e-commerce, education, and gaming industries, including Bitpanda, Wirex, Avis, Bybit, Vodafone, Duolingo, Kaizen Gaming, and TransferGo.

Sumsub has citations in research published by global institutions such as the United Nations and Statista, as well as ongoing consultancy and engagements with INTERPOL.

About DKM ECO

DKM ECO is dedicated to promoting and showcasing world-leading innovative technology solutions, helping businesses establish a global market presence and expand their operations internationally.With a combination of professional expertise and technical resources, DKM ECO supports companies in achieving comprehensive global business coverage.

The post Sumsub Enhances Compliance and Defence Strategies with DKM ECO to Combat a 234% Increase in Fraud Cases in Hong Kong’s Fintech Sector first appeared on DKM Ecosystem.