Compliance plays a huge role in the relatively young blockchain industry. Although decentralized technology is somewhat of an improvement compared to modern payment systems, it also introduces new attack vectors for bad actors.
Exchanges, trading platforms, DeFi protocols, and crypto businesses must meet regulatory compliance standards to combat bad actors. One way to achieve compliance is by using some of the best crypto compliance software in 2022.
1. ConsenSys Diligence
Consensys Diligence is a blockchain security and smart contract audit firm that helps companies maintain their Ethereum decentralized applications. The firm is hired by more than 100 blockchain companies and performs over 10,000 analyses each month.
The Consensys Diligence product enables developers to ensure that their Ethereum application is ready to launch without any security risks. This protects investors by helping them avoid potentially harmful dApps that malicious actors can exploit.
Consensys reviews and double-checks all smart contract code to prevent security risks. Their APIs automatically scan smart contract code and ensure it is protected and fortified. Moreover, the software continues to scan and analyze code, allowing continuous verification as developers change code.
Prepares Ethereum dApps for launch by scanning code for vulnerabilities
Ensures continuous smart contract verification as developers change code
Evaluates smart contract business logic and analyzes potential risk vectors
Audited code for 0x, Thesis, and Horizon blockchain games
Need to contact for price
The compliance tools offered by Civic allow crypto companies, DeFi protocols, blockchain networks, and NFTs to meet all necessary KYC and AML criteria. The firm now focuses on building a human-centered identity in order to build a more convenient and secure future.
Civic allows you to unlock Web3 with a single identity while simultaneously protecting your privacy. You can connect multiple wallets (from multiple blockchains) and aggregate all your NFTs in one place. All of this is done by creating a simple to use Civic Pass.
Civic prevents bad actors from interacting with NFT markets by creating verifiable and human online identities. Each person’s identity is verified, thus enabling Civic to verify someone’s location and determine whether they come from a sanctioned country.
Creates verifiable human identities on-chain while safeguarding privacy
Enables protocols to distinguish between good and bad actors
Allows users to connect all their collections from multiple wallets in one place
Free to use
Blockpass is a KYC and AML compliance solution designed for blockchain and other industries. The firm is based in China and allows crypto developers to meet all regulatory guidelines and requirements when onboarding new users.
Blockpass claims to provide the cheapest and fastest KYC and AML screening in the entire crypto market. The firm prevents bots and bad actors from interacting with crypto businesses. It also ensures that all users meet FATF travel rule compliance and enables companies to whitelist and blacklist wallets.
Blockpass is partnered with Chainlink, LinkPool, Polygon, Cardano, and many other crypto projects. It has also been featured in The Times and Forbes.
The platform also offers PASS tokens. Pass tokens represent identity tokens used in dApps that facilitate reputation collateral, proof of liveness, loyalty rewards, and NFT certification.
PASS tokens enable embedded identity, reputation collateral, Proof of Liveness, NFT certification, and loyalty Rewards.
Free to use for individuals; businesses must contact the firm.
Elliptic brings compliance to crypto assets by performing blockchain analytics, certification, and training for cryptocurrency companies, regulators, and financial institutions. The firm helps mitigate financial crime, improves risk management, and helps companies meet compliance standards.
Elliptic is a UK-based company that has worked with many notable industry entities, including Coinbase. Their software also assesses crypto exposure, helps firms navigate crypto wallets, and protects them from cryptocurrency risk. They provide blockchain analytics for over 500 crypto assets and have a gigantic data library that provides accurate and actionable insight that helps mitigate risk and meet compliance standards.
Screens crypto wallets for AML/CFT and sanctions risk
Monitors crypto transactions for compliance risks using Elliptic Navigator
Performs due diligence and assesses VASP firms for business risk
Investigates crypto assets and crypto transactions
Traces transactions throughout the entire blockchain ecosystem
Offers a free demo, the price for services is provided after inquiry.
Simplex offers crypto payments to businesses, as well as fraud prevention solutions. The platform allows companies of all sorts to mitigate compliance risk and to allow their customers to spend and pay with crypto for various goods and services. Simplex is also a fiat on-ramp and off-ramp that enables clients to purchase crypto with credit and debit cards.
Simplex is one of the largest 3rd-party crypto payments solutions. The firm is an industry leader that helps millions of people buy and sell digital assets. The firm is a licensed financial institution that accepts various payment methods, including Visa, MasterCard, SWIFT, SEPA, and Apple Pay.
The platform supports more than 130 cryptocurrencies and over 115 fiat currencies. Simplex is a globally-accessible solution partnered with over 350 firms and vendors.
Offers crypto payments to vendors and users
Functions as a fiat on-ramp and off-ramp
Supports hundreds of cryptocurrencies and fiat currencies
Works with well-known crypto exchanges, including Binance
Combats fraud by requiring KYC and AML verification
Free for individuals. Companies seeking Simplex integration must contact the company.
6. Solidus Labs
Solidus Labs is a trade surveillance, transaction monitoring, and threat intelligence compliance solution for crypto businesses. The firm is partnered with many crypto exchanges and businesses, including FTX US, Huobi Tech, Anchorage Digital, Bittrex, and many others.
The services provided by Solidus Labs can detect and investigate any market manipulation conducted in crypto markets. Features include compliance management, regulatory importing, and customized alerts.
Solidus Labs offers its services to crypto exchanges, market makers, hedge funds, decentralized exchanges, and crypto broker-dealers.
Performs trade surveillance to combat digital asset market manipulation
Monitors transactions in real-time to prevent fraud and ensure regulatory compliance
Offers onboarding verification for retail and institutional clients seeking to join the crypto space
Offers free demo; paid services require personal inquiry
Coinfirm is a crypto compliance and blockchain analytics firm that helps the crypto market meet all regulatory rules. The platform helps create a safer and clean blockchain economy for retail and businesses.
Confirm offers several compliance tools that meddle in blockchain analytics and AML solutions, with the core purpose of analyzing the market to manage compliance risk.
The firm monitors transactions, wallets, and clustering risks by monitoring crypto assets using its blockchain analytics tool. It also conducts blockchain investigations to track crypto assets and facilitate forensic investigations. Coinfirm also helps crypto entities meet compliance standards and monitor their due diligence.
Allows clients to meet compliance standards for all AML and FATF rules
Monitors and tracks transactions in real-time
Assists crypto companies with meeting FATF travel rule guidelines
Price information is obtained after personal inquiry.
What Is the Importance of Crypto Compliance Firms?
Crypto compliance firms help businesses meet KYC, AML, and CTF standards. Reaching compliance also means preventing clients who do not meet these standards from using the services provided by such businesses.
Let’s say I’m a North Korean resident who has laundered millions of dollars worth of stolen assets through a crypto mixer. Not only am I from a sanctioned country, but I am also trying to sell stolen crypto assets for fiat. Any exchange I interact with should verify whether I comply with global regulatory laws and prevent me from selling those assets.
The cryptocurrency market is sadly still young. Bad actors can steal assets, hack protocols, manipulate prices, and perform various other criminal activities. It is the job of regulators and crypto intelligence firms to combat these users and make the industry a cleaner and safer place for the average retail investor.
If you want to learn about more products that help crypto investors, I suggest reading the following articles:
Marko is a crypto enthusiast who has been involved in the blockchain industry since 2018. When not charting, tweeting on CT, or researching Solana NFTs, he likes to read about psychology, InfoSec, and geopolitics.