Now, Micapass has secured €240K from innovation lab SUPER HOW? and Baltic startup accelerator Firstpick. Micapass will use the investment to develop a fully decentralised compliance tool with AI-based suspicious activity alerts and multi-chain support.
Regulatory compliance tool
Exploiting weak Anti-Money Laundering (AML) crypto policies, crypto criminals are taking advantage of decentralised finance protocols and using them for illegal activities. The rise of decentralised finance usage, involving over 6 million unique addresses, complicates current AML practices in tracking illegal crypto movements.
The future of AML practices in cryptocurrencies rests on the compliance tools development to provide more legitimacy to the unregulated crypto market. Developing compliance technology can accelerate governmental initiatives to regulate the market and reduce the crimes financed with cryptocurrencies.
Founded by Gintarė Košubienė and Justas Rožėnas, Micapass is an on-chain AML compliance tool for the evolving DeFi ecosystem. It provides an advanced AML wallet screening and continuous KYC/AML monitoring designed for DeFi protocols, enabling the identification of bad actors. Apparently, it helps prevent potential sanctions, and ensures regulatory compliance.
Micapass is responding to the changing regulatory landscape in the crypto market, including the upcoming MiCA regulation in the European Union. Other countries like the UK, South Korea, and Hong Kong are also following suit.
“Crypto crime can affect anyone, especially considering the risks associated with large-scale money laundering and terrorist financing,” said Gintarė Košubienė, CEO and co-founder of Micapass. “The growing use of DeFi protocols for crime funding is a precedent to develop new anti-money laundering crypto compliance practices.”
“The lack of global consensus hinders current AML crypto implementation, yet regtech companies can help develop solutions applicable in the upcoming regulatory environment that will prevent sanctioned entities from entering the protocols,” emphasised the CEO of Micapass.