Code launches personal-wallet identification solution… “Closing AML blind spots”

Virtual-asset regtech firm CodeVASP has unveiled a new solution for managing transaction risks involving personal wallets.

Code said on the 25th that it has launched an “Unhosted Wallet Verification” feature to address regulatory gaps related to unhosted wallets.

In February, the Korea Financial Intelligence Unit (FIU) announced measures to bolster the virtual-asset AML framework through its “2026 Key AML Work Plan.” The plan includes expanding the scope of the Travel Rule to transactions under 1 million won and strengthening oversight of transactions involving personal wallets and overseas operators.

A March report by the Financial Action Task Force (FATF), titled “Stablecoins and Unhosted Wallets,” also pointed to personal-wallet-based P2P transactions as a regulatory blind spot.

While the Travel Rule has worked effectively for information transmission between operators, critics have long noted that compliance is constrained in personal-wallet transactions because verifying ownership is difficult.

The solution unveiled by Code is designed to verify in real time that a user owns a specific wallet by leveraging blockchain-based electronic signatures. Compared with the existing screenshot-submission method, it reduces the risk of forgery and tampering and automates the verification process.

Also introduced was a “Transaction Visualizer” feature, which analyzes on-chain fund flows in graph form to help users intuitively grasp complex transaction structures. The company said it can be used to identify multi-path transactions or stepwise, dispersed P2P fund movements.

Code said the feature also aligns with regulators’ recent push to adopt AI-based analytics. The FIU has referenced introducing an AI-driven review system, and the FATF has likewise stressed the need to respond to complex money-laundering routes.

Industry participants say the solution could help not only with regulatory compliance but also with reducing operational burdens. It is also viewed as an advantage that it can be implemented without a separate system overhaul by integrating with existing Travel Rule infrastructure.

Lee Seong-mi, CEO of Code, said, “As demands for unhosted-wallet management are expanding rapidly, it is important to create an environment in which operators can respond without confusion,” adding, “We are focused on providing regulatory-response solutions that are practically applicable.”