The blockchain industry’s first security token issuance platform called Polymath has just partnered up with IdentityMind for KYC (know-your-customer) and AML (anti-money laundering). The ongoing regulatory attention on the crypto and blockchain world is warranting some additional attention on part of firms in the industry.
The provider of the first security token issuance platform, Polymath has added best-in-class security and regulatory compliance capabilities from its partner. IdentityMind has been delivering transaction monitoring for e-commerce fraud prevention, anti-money laundering (AML), and the counter financing of terrorism (CFT).
Polymath also signed a deal with Agrello, a company that is offering blockchain-based smart agreement solutions. These new partnerships are aiming to streamline the issuance of security tokens in an environment where anti-money laundering (AML) and know your customer (KYC) processes are executed smoothly and securely.
Aside from smart agreements, Agrello will also provide digital signature and identity technologies.
Security Tokens and Regulators
Polymath is one of the main blockchain technology pioneers focusing to make ICOs of security tokens closer to mass scale adoption. With token sales and ICOs having raised over $4 billion worldwide in largely unregulated crowd sales, the regulatory pressure on the industry is increasing.
Earlier today a report by Europol shed some additional light on the AML/KYC issues surrounding the crypto-industry.
The crackdown on part of authorities has made the issues of security tokens more difficult and have prompted most companies that are raising funds via an ICO to adopt a token model of sale.
Commenting on the deal, the CEO of Polymath, Trevor Koverko said: “We know a stampede is coming from capital markets to blockchain. Polymath is creating the technology platform that helps to form the basis of a security token.”
“In this new world, regulatory compliance and insight into the identity of issuers and investors is a must if sophisticated financial products are going to migrate to the blockchain. Having experienced, reputable partners like IdentityMind and Agrello by our side is critical to ensuring the long-term success of Polymath,” Mr Koverko explains.
IdentityMind has been providing digital currency, regulatory and risk management solutions to FinTech companies. The company’s products handle the AML and KYC requirements necessary to launch regulatory compliant token offerings. Additional plug-ins allow issuers to monitor where their investors are coming from and prevent certain geographies from participating in the fundraising process.
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