Roundup – 04/02/2019 – RegTech Startup Receives $1.7 Million in Funding Round & more

RegTech Startup Receives 1.7 Million in Funding Round

The crypto startup Token Relationship Management (TRM) has received $1.7 million dollars in a funding round. Among the investors are companies like “Blockchain Capital[…] Tapas Capital, Green D Ventures, The MBA Fund, and strategic angel investors”. According to their press release, the startup operates in the RegTech branch. Its services are focused at other startups: “Crypto makes it possible for any startup to become a financial institution. But not any startup can afford to hire a 40-person legal and compliance team.” TRM offers to take care of any regulatory work including usual AML, CFT & KYC regulations. The startup solves this issues at least partly on-chain. Further services include the monitoring of transactions to identify money laundering and other illegal activities and customer management.

However, their view of the role of cryptocurrencies differs wildly from the core of the crypto space when they state: “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.” TRM works to incorporate cryptocurrencies in the traditional, centralized financial system. Which stands in conflict with Bitcoin’s goal of becoming a decentralized, permissionless and censorship-resistant means of payment.

New Hampshire Approves Bill to Allow Tax Payments in Bitcoin

The senate of the state with the nickname the ‘free state’ has approved the bill AB 470. The bill enables the citizens of New Hampshire to pay their taxes in Bitcoin. However, the law amendment will concern only taxes that the state of New Hampshire charges. Yet, before citizens can pay their taxes in Bitcoin the necessary institutions have to be created. The bill includes the founding of any accounting and managing institutions that are necessary to process the payments. It is likely that the state will get a third party onboard as Ohio did with BitPay.

Cryptocurrency Exchange Loses $145 Million Following the Death of Its CEO

QuadrigaCX, one of the leading cryptocurrency exchange platforms in Canada, has lost digital currencies worth $145 million following the death of its CEO, Gerald Cotton. The exchange is at loss of words on how to explain the loss to hundreds if not thousands of customers who have been using the platform to trade and invest in various cryptocurrencies such as Bitcoin.

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SEC Looks for Company to Analyze Blockchains

As reported by, the SEC released a sources sought notice for a company that is able to monitor blockchain transactions and to identify the users behind Bitcoin addresses and wallets. It is a vital step in the SEC’s agenda to enforce financial regulations in the crypto space. To identify users on a blockchain is possible through exchanges that comply with KYC regulations. Any exchange has to reveal the legal names of their customers if the SEC or any other state institution asks them to do so. Another way to identify Bitcoin or altcoin users is by identifying the IP of a user as it is saved on the blockchain when not using any encrypting or disguising methods.

Venezuela Releases Crypto Legislation

Amidst the continuing riots in Venezuela, the country’s legislation on cryptocurrencies has entered into force. The new comprehensive legislation contains 63 paragraphs that regulate cryptocurrencies as a means of exchange. Sale, distribution and purchase are now regulated. The Sunacrip, a kind of financial watchdog for the crypto space, received more power through the new regulations. Any individual or legaly entity that wants to deal with cryptocurrencies has to register now at the Sunacrip. The legislation does not contain any paragraphs on taxation, however. It is possible that this subject is now Sunacrip’s agenda. The last paragraphs of the new decree describe penalties such as confiscation (of mining equipment e.g. or the withdrawal of licences.