News Startup Receives $1.7 Million to Help Keep Cryptocurrency Controlled
Elsa Saikkonen | Feb 03, 2019 | 09:00
Token Relationship Management (TRM) has received $1.7 million from investors like Blockchain Capital to provide cryptocurrency startups with solutions to stay compliant with local regulations.
Staying compliant in an ultra-confusing and ever-changing regulatory landscape is not easy for your average cryptocurrency startup looking to actually stay complaint as opposed to simply exit scam with users’ funds. Now, startup TRM is offering a RegTech solution as part of its Token Relationship Management platform.
TRM’s offering is designed to simplify on-chain anti-money laundering (AML) compliance for companies working with cryptocurrencies and digital assets. According to a press release, the platform offers solutions for “on-chain customer due diligence, transaction monitoring, and customer relationship management.”
KYC and Transaction Monitoring
In addition to RegTech, TRM is also developing solutions for the automated detection of suspicious activity. Such activities include money laundering and the manipulation of markets.
More than 20,000 individuals have already KYC’d themselves and their Ethereum (ETH) addresses on RegTech.
TRM’s product has already been put to use with TrustToken’s TrueUSD — a stablecoin backed by the US dollar not entirely dissimilar to Tether (USDT).
Explained Esteban Castaño, TRM CEO and co-founder:
We believe that cryptocurrency is going to be a democratizing force in the world that lets anyone exchange value and access financial services. But to get there, we need to make it easier for everyone to be compliant. Just as the Internet led to an explosion of new content, crypto is leading to an explosion of new financial products and markets. We need regulatory and compliance infrastructure that scales with this new world.
Keeping Cryptocurrency Controlled
Though regulatory compliance is important for any legitimate business, Bitcoin (BTC) and many other cryptocurrencies were created and developed to help individuals maintain control over their financial and personal freedom. Solutions like TRM’s RegTech appear help centralized institutions maintain centralized control over the cryptocurrency space. Solutions like this may help facilitate the mainstream adoption of cryptocurrency-related technologies but appear to do little to further decentralization.
What do you think about TRM’s RegTech solution to help cryptocurrency startups remain regulatory compliant? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock.
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