VeritasChain and ABLENET Launch World's First Cryptographic Audit Trail for MetaTrader Platforms

Japanese VPS leader ABLENET, backed by Mitsui-SMBC-DBJ consortium, validates AI Flight Recorder for 9.6M+ traders—comprehensive research confirms no competitors

TOKYO, JAPAN, December 27, 2025 /EINPresswire.com/ -- VeritasChain Standards Organization (VSO) and K&K Corporation (ABLENET) today announced the successful launch of a joint Proof-of-Concept (PoC) delivering the World's first implementation of cryptographically verifiable audit trails for MetaTrader 4/5 trading platforms. This groundbreaking initiative addresses a critical gap in the global retail forex market, where 9.6 million traders and 750+ brokers operate without tamper-evident transaction logging.

The "World's First" claim has been substantiated through comprehensive research documented in a publicly available evidence report, confirming that no competing cryptographic audit trail solution exists for the MetaTrader ecosystem.

■ Verification of World's First Claim
VSO commissioned extensive due diligence across three independent research sources—internal analysis, Perplexity AI deep research, and Claude AI investigation—to verify the unprecedented nature of this implementation. The consolidated findings include:

•85+ search queries across Google, Bing, academic databases, and specialized platforms
•28+ RegTech and blockchain companies analyzed for MT4/MT5 compatibility
•22+ relevant patents reviewed in cryptographic audit and blockchain trading domains
•Multi-language searches conducted in English, Japanese, and Russian markets

The research confirmed that while general cryptographic audit trail patents exist (dating to US6968456B1 in 2000) and blockchain trading verification solutions serve institutional markets (such as Nasdaq's Consolidated Audit Trail patent from 2016), no prior art or commercial product specifically addresses the MetaTrader ecosystem.

The complete evidence documentation is available at: https://github.com/veritaschain/vso-docs/blob/main/VCP_WorldFirst_Evidence_Report_v3_Wide.pdf

■ Critical Market Gap Identified
The MetaTrader platform, developed by MetaQuotes, dominates the global retail forex and CFD trading market. Current statistics demonstrate the scale of this ecosystem:

•9.6+ million online traders rely on MT4/MT5 globally
•750+ brokerages utilize MetaQuotes software
•62% market share for MT5 as of Q3 2025, with MT4 holding 38%
•~100% of retail CFD trading occurs on MetaTrader platforms
•$10,000-$20,000 monthly license fees indicate deep broker platform lock-in

Evidence Report: https://github.com/veritaschain/vso-docs/blob/main/VCP_WorldFirst_Evidence_Report_v3_Wide.pdf

Despite this market dominance, MetaQuotes' official documentation confirms a critical vulnerability: MT4/MT5 logs are plain text files stored in YYYYMMDD.LOG format that can be manually edited or cleared through the interface. The platform's own reference notes that "Cryptography is rarely used in MQL programs. There are not so many opportunities in everyday trading to use cryptography."

This creates a fundamental trust problem. Fraudulent brokers can create fake MT4/MT5 servers that mimic legitimate platforms, providing fabricated price quotes, fake trade executions, and falsified account histories. No existing solution addresses this trust gap—until now.

■ Differentiation from Blockchain Analytics Companies
A common misconception conflates cryptographic audit trail creation with blockchain analytics. Major blockchain companies examined in the research serve fundamentally different purposes:
Chainalysis, Elliptic, and TRM Labs analyze transactions that already exist on public blockchains. They are forensic tools for cryptocurrency investigations and compliance monitoring. These companies:

•Cannot create audit trails where none exist
•Cannot work with off-chain forex/CFD trading
•Have zero presence in the MT4/MT5 ecosystem
•Cannot provide cryptographic proof of non-tampering for trade logs

VCP's differentiation is foundational: it creates cryptographic proofs at the point of trade execution for a platform ecosystem with zero existing solutions. This serves 9.6 million retail traders who currently have no mechanism to verify that their trading records have not been tampered with.

Similarly, enterprise trade surveillance systems such as NICE Actimize SURVEIL-X, Nasdaq SMARTS, and Eventus Validus target institutional trading desks and exchanges—none integrate with the proprietary MQL4/MQL5 environment that defines the MetaTrader ecosystem.

■ Technical Architecture
The VeritasChain Protocol (VCP) v1.0 implements rigorous cryptographic standards:

•Digital Signature: Ed25519 (RFC 8032)
•Hash Function: SHA-256 (FIPS 180-4)
•Merkle Tree: Certificate Transparency compliant (RFC 6962)
•Time-ordered Identifiers: UUID v7 (RFC 9562)
•JSON Canonicalization: Deterministic serialization (RFC 8785)

The protocol operates through a three-tier compliance model:

•Platinum Tier: HFT and exchanges requiring PTP synchronization and nanosecond precision
•Gold Tier: Institutional brokers with NTP synchronization and microsecond precision
•Silver Tier: Retail traders and prop firms with best-effort synchronization and millisecond precision—full MT4/MT5 support

The Silver Tier innovation enables non-intrusive deployment through a "sidecar" architecture that requires no modifications to existing MT4/MT5 installations. This dramatically reduces adoption barriers for the retail forex market.

■ ABLENET Partnership and Infrastructure
K&K Corporation, operating under the ABLENET brand, represents an ideal validation partner for this World-first implementation:

•Established February 1998 with 25+ years of continuous hosting operations
•99.99%+ uptime record across top-tier data centers in Osaka, Japan
•220+ Gbps backbone bandwidth with NTT Communications and OPTAGE carrier redundancy
•Leading MT4/MT5 VPS provider in the Japanese market

In September 2022, ABLENET received investment from MSD Enterprise Investment Group, a consortium comprising:

•Mitsui & Co. — Japan's largest general trading company
•Sumitomo Mitsui Banking Corporation — Tier 1 global financial institution
•Development Bank of Japan — Government-backed policy finance institution

This backing from three major Japanese financial institutions provides international credibility for the technical validation of VCP in a production trading environment.

■ Regulatory Environment and Timing
The PoC launch is strategically timed to address imminent regulatory requirements:

■ EU AI Act (Full Enforcement: August 2, 2026)
Article 12 mandates automatic logging capabilities for high-risk AI systems, while Article 13 requires transparency and traceability enabling post-hoc verification. Non-compliance penalties reach €35 million or 7% of global annual turnover, whichever is higher.
VCP's implementation directly addresses these requirements:

•VCP-TRADE module captures trading events
•VCP-GOV module logs governance decisions
•VCP-RISK module records risk parameter changes
•Hash chain validation enables traceability
•Merkle tree verification enables third-party audit

■ MiFID II RTS 25
The European Securities and Markets Authority requires that "Operators of trading venues and their members or participants shall be able to evidence that their systems meet the requirements." Traditional log files cannot provide this evidence—VCP's Merkle tree-based verification enables mathematical proof of compliance.

■ SEC Rule 17a-4 (2022 Amendment)
The U.S. Securities and Exchange Commission's audit trail alternative requirements specify modification tracking, timestamp accuracy, and user identification. VCP implements:

•Hash chain validation with O(n) tamper detection
•Silver Tier: ±1ms timestamp accuracy; Gold Tier: ±1μs
•OperatorID and LastApprovalBy fields for complete user tracking

■ Japan Market Context
Japan represents the world's fifth-largest forex market with the most stringent regulations globally (25x leverage cap). Retail FX trading volume reached ¥8,957 trillion (~$60 trillion USD equivalent) in January-September 2023 alone—a record high. The Japan Financial Services Agency (JFSA) compliance requirements align with VCP's audit capabilities.

■ International Standardization Progress
VCP is advancing through multiple international standards bodies:

■ IETF Internet-Draft
The protocol specification has been submitted as draft-kamimura-scitt-vcp to the Internet Engineering Task Force under the SCITT (Supply Chain Integrity, Transparency, and Trust) Working Group. This positions VCP within the broader ecosystem of cryptographic transparency standards alongside Certificate Transparency and software supply chain attestation.

■ Regulatory Authority Submissions
VSO has submitted VCP documentation to 50+ regulatory authorities across 40+ countries, including:

•Americas: SEC, CFTC (United States); OSC (Canada); CVM (Brazil)
•Europe: FCA (UK); BaFin (Germany); AMF (France); ESMA (EU)
•Asia-Pacific: MAS (Singapore); JFSA (Japan); SFC (Hong Kong); ASIC (Australia)
•Middle East: DFSA (Dubai); ADGM (Abu Dhabi); CMA (Saudi Arabia)

■ Addressing the Prop Trading Industry Crisis
The 2024-2025 period has witnessed unprecedented turbulence in the proprietary trading firm industry, with 80-100 firms closing amid controversies over trade execution integrity and payout disputes. VCP directly addresses the root cause: the inability to independently verify that trading records accurately reflect actual market execution.

The "Don't Trust, Verify" philosophy underlying VCP enables:

•Traders to prove their performance records are authentic
•Prop firms to demonstrate fair evaluation practices
•Regulators to audit algorithmic trading without relying on operator assurances

■ Evidence Report Availability
The comprehensive "World's First" claim verification report (Document ID: VSO-EVIDENCE-003-EN) is publicly available and includes:

•Consolidated research methodology from three independent sources
•Detailed competitive analysis across five market categories
•Patent landscape review with 22+ relevant filings examined
•Multi-language search results (English, Japanese, Russian)
•Regulatory alignment assessment for EU AI Act, MiFID II, and SEC requirements
•Legal risk assessment with recommended claim language

Access the full report: https://github.com/veritaschain/vso-docs/blob/main/VCP_WorldFirst_Evidence_Report_v3_Wide.pdf

■ Future Roadmap
Following successful PoC validation, VSO plans:

Q1 2026: Production deployment with initial ABLENET customers
Q2 2026: VC-Certified certification program launch (Silver/Gold/Platinum tiers)
H2 2026: Expansion to additional VPS providers and brokers globally
2027+: Post-quantum cryptography migration (Dilithium integration)

■ About VeritasChain Standards Organization (VSO)
VSO is a vendor-neutral, non-profit standards body dedicated to developing open protocols for AI and algorithmic trading auditability. Founded on the principle that "civilizations should learn before accidents occur," VSO's mission is to establish cryptographic transparency infrastructure for AI systems operating at speeds beyond human comprehension. The organization maintains strict independence from commercial implementations to ensure protocol neutrality.

■ About ABLENET (K&K Corporation)
Established in February 1998, K&K Corporation operates Japan's premier hosting infrastructure under the ABLENET brand. With Tier 1/2 class data centers in Osaka, 220+ Gbps backbone capacity, and 25+ years of operational excellence, ABLENET has become the leading MT4/MT5 VPS provider in the Japanese market. The 2022 investment from MSD Enterprise Investment Group (Mitsui, SMBC, DBJ) positions ABLENET for continued expansion in financial services infrastructure.

■ Media Contact:
VeritasChain Standards Organization
Email: pr@veritaschain.org

■ Resources:
Website: https://veritaschain.org
GitHub: https://github.com/veritaschain
IETF Draft: https://datatracker.ietf.org/doc/draft-kamimura-scitt-vcp/
Evidence Report: https://github.com/veritaschain/vso-docs/blob/main/VCP_WorldFirst_Evidence_Report_v3_Wide.pdf

■ Important Notice
VeritasChain Standards Organization (VSO) maintains strict vendor neutrality as a non-profit standards body. This announcement documents a technical Proof-of-Concept and should not be construed as:

・An endorsement or recommendation of ABLENET, K&K Corporation, or any affiliated entity
・A certification of any product, service, or commercial offering
・Investment advice or a solicitation of any kind

VSO's mission is to develop open, interoperable protocols. Participation in technical validation does not imply preferential treatment or exclusive partnership.

TOKACHI KAMIMURA
VeritasChain Co., Ltd.
kamimura@veritaschain.org
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