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.
We all know that regulations play an important role in the cryptocurrency industry and most importantly we’ve seen a lot of cryptocurrency related companies shut down due to their failure to comply with local regulations.
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.”
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).
TRM CEO and co-founder commented on this by saying:
“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.”
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.
The company just took on $1.7 million in funding to achieve this goal. TRM also mentioned that they will have new products coming out that will include more tech to help blockchain companies stay compliant.