There has been quite a bit of scepticism around for ICOs recently. People are of the view that they are sometimes used for dubious means by companies that cannot fully vett the individuals who are funding the projects.
Indeed, there are a number of people who have called for sensible regulations that will instil more faith in the system. There is, however, another option that is being presented.
Coinfirm, which is a leading blockchain regulatory technology company announced that they would be providing the world's first Ethereum anti money laundering analysis capability. This would no doubt be a great step forward and boost Ethereum adoption and hardening security. According to Coinfirm CEO, Pawel Kuskowski
We’ve been met with a great response so far from clients who use our AML reports for ICOs and token issuance. Our capability to service Ethereum for AML/CTF changes the game not just for the cryptocurrency ecosystem but compliance overall
A Large Problem
Given the anonymous nature of the blockchain and Ethereum ecosystem, carrying out proper due diligence in the way of anti-money laundering and KYC on those that are investing is really difficult. Unlike traditional financial institutions, running effective checks on the blockchain is infinitely harder. This is slowing the growth of the crypotcurrency ecosystem from large scale adoption.
Coinfirm, however, has quite an effective solution. They are already applying their technology to a number of ICOs where they use the embedded functionality of the smart contracts to enable data analysis which can prevent money laundering.
The technology behind Coinfirm can also be used by more traditional financial institutions. As these companies get more and more requests from clients to provide cryptocurrency services, they cannot ignore the demands of their clients. However, they are reticent to adopt these new services without an effective way to run their compliance.
This is where the technology behind Coinfirm can fill the breach. They can provide the capability for not only the blockchain community but also for the traditional financial institutions to run their checks. Regulators all across the world are taking notice and beginning to scrutinize cryptocurrencies in general.
RegTech Solutions for Safer ICOs
Coinfirm is well known in the blockchain community for their revolutionary Trudatum platform and have gathered a number of partners and clients in the blockchain community. For example, they have partnered with the cryptocurrency Dash as well as banking firms such as SEI.
Moreover, the Coinfirm technology is blockchain agnostic. This means that it can be used to run checks on any number of different blockchains. Although it was developed for the Bitcoin blockchain, it has already being adopted for Dash for example. Now with their roll out of the Ethereum, Coinfirm is proving their adaptability and is intent on rolling out many other features to the platform in due course.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.