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As cryptocurrencies continue to make their mark with mainstream adoption, regulatory compliance has become a central theme in the nascent digital space. This has become even more important with the increasing hacks we have seen in the decentralized market this year. Compliance becomes key in ensuring market integrity, transparency, and investor protection.
Despite a significant market size of close to $1 trillion, cryptocurrencies remain largely unregulated. This poses a problem for financial regulators, who remain fragmented on how to implement new rules to control the wild west of digital space. This massive growth in cryptocurrencies has raised the prospect of illicit transactions such as illegal goods, tax evasion, market manipulation & financing terrorism.
This has also led to the need for adhering to the requirements outlined in Anti Money Laundering (AML) cryptocurrency regulations. AML encompasses know-your-client (KYC), know-your-business (KYB), and know-your-transactions (KYT) regulations. And this is where the role of crypto compliance providers becomes so important.
Blockdata reviews the top 10 crypto compliance providers based on the amount of funding raised. The infographic above designed by Blockdata features the funding raised, the number of employees, the number of clients, notable clients & products offered. Most of these compliance providers appear to be based in the US, but London, Singapore, and the Caribbean are also home to many companies.
These compliance providers have been in the news this year with new products, raised funding, obtained industry certifications, and participated in mergers and acquisitions (M&A) activities. Let’s briefly review some of these companies:
Chainalysis: It is the largest & the most well-known crypto compliance company with an estimated revenue of $178.5M. Operating in over 70 countries, the company monitors cryptocurrency transactions worth approximately $400B each month.
: Around 66% of the crypto volume flows through exchanges using UK-based Elliptic’s solutions. Elliptic uses blockchain analytics across more than 500 crypto assets and 100 billion data points to provide accurate insights for its client companies.
Merkle Science: Singapore-based analytics company provides several crypto compliance services, including next-generation risk mitigation, forensics, and compliance for a wide range of clients.
: UK-based RegTech firm monitors over 25,000 entities and more than 920,000 crypto assets.
Scorechain: Luxembourg-based company provides bespoke risk-AML software for cryptocurrencies.
Blockpass: UK-based compliance company offers KYC-as-a-service for customer onboarding to regulated industries & KYC/AML screening and national ID verification.
Solidus Labs: The company’s solutions protect over 25 million entities and monitor more than 1 trillion events daily.
: The company’s platform supports over 1 million digital assets across 23 blockchains.
Notabene: provides crypto travel rule compliance solutions, as well as bank-grade end-to-end counterparty verification solutions.
: UK-based regulator offers almost 100 crypto compliance solutions across more than 220 countries.
