Vancouver, B.C., Canada-based regulatory technology (RegTech) company iComply Investor Services Inc. announced in a press release CoinReport received from Exvera Communications, iComply’s PR firm, the launch of the company’s global RegTech platform for digital finance and cryptocurrencies in public beta.
The announcement follows the closure of a seven-figure seed round led by former Standard and Poor’s president Deven Sharma, who is now a technology investor and also serves as a research fellow with Connection Science at the MIT Media Lab.
iComply CEO Matthew Unger said in the release, “Tokenization of securities and other financial instruments holds incredible potential; however, security token platforms and initial coin offerings being used in practice are still riddled with issues. With no mechanism to ensure compliance, tokens on the secondary market become prime vehicles for sanctioned individuals, criminals, and known terrorists to launder millions.”
He added, “The recent Mueller indictments demonstrate how Bitcoin was used to fund the attack on the U.S. Election, and that blockchain forensics are able to screen for stolen funds, proceeds of crime, and ensure that sanctioned individuals and companies are not participating illegally and putting the ICO or security token platform at risk.”
A recent KPMG report states, on page 29, “Regulators must develop more up-to-date, focused standards that deal with the challenges of this rapidly evolving area. And financial institutions must take responsibility for ensuring their systems and processes are capable of mitigating the risks insofar as possible.”
iComply says its patent-pending software uniquely blends strong KYC, blockchain forensics, secondary trade management (presently deployed only for Ethereum), AML, source of funds reporting and also registrar functions for equity tokens.
Unger further said, “We developed this software so that security and utility tokens can monitor and document compliance, governance, and risk procedures while trading in real time. This can solve one of the last major barriers between cryptocurrencies and institutional investors – in particular, the ability for a token to prevent itself from going into the wallet of an unverified or illegal actor, such as sanctioned individuals or terrorists.”
The company proclaimed its first product in private beta in Bloomberg Law in February. Since then, it says it has exceeded six-figure yearly repeated profit.
“Since launching in private beta, we have been working with select security token platforms, cryptocurrency exchanges, as well as security and utility token issuers to establish the minimum viable product (MVP) requirements for today’s release,” Unger stated. “iComply has been built to the standard of the traditional financial markets from day one. Compliance must be addressed not only so security tokens can gain legitimacy in the market but to protect the people participating in this new economy.”
The company says it is collaborating closely with prominent securities lawyers all over the world to provide click-button deployment of legal rule sets, such as Reg A, D, A+, S and private placements in the United States, and document templates for securities exemptions in jurisdictions all over the world.
Images (including the featured image visible from homepage) via the Press & Media page of iComply’s website