Major CeFi Players Invest Big In Crypto-Compliance Solution By TRM Labs

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There is a growing focus on cryptocurrency compliance and regulation. For example, TRM Labs, a blockchain intelligence platform, has secured $60 million in Series B funding to bring its crypto-compliance platform to market. Interestingly, prominent traditional finance players pay very close attention to this project. 

Crypto-Compliance Sparks Interest

It is intriguing to see how the world has shifted toward crypto-compliance in recent years. Regulation and cryptocurrency often lead to heated debates, as it is challenging to apply traditional rules to ecosystems that run without traditional management structures or headquarters. Moreover, different countries maintain various rules for crypto companies and services, making it tricky to establish a growing presence without tremendous financial backing.

TRM Labs, mainly known for its focus on blockchain intelligence, wants to expand its reach. The company aims to build a crypto-compliance platform by combining cross-chain data with threat intelligence, advanced analytics, and better visualizations. As a result, clients will have an easier time detecting crypto fraud and financial crime, a crucial first step to bringing more legitimacy to the broader cryptocurrency industry. 

Several companies in the crypto and blockchain space have made use of TRM Labs’ solution already, including Circle. MoonPay, and FTX.us. Detecting suspicious activity and adhering to AML regulatory requirements are two main driving factors. Additionally, TRM Forensics, another tool under the TRM Labs banner, notes strong uptake by government agencies investing crypto-related crimes. 

The crypto-compliance platform has now secured $60 million in Series B funding. That funding round saw tremendous support from traditional finance entities, including Visa, Amex Ventures, PayPal Ventures, Block, and Citi Ventures. Tiger Global led the round. 

Ongoing Growth For TRM Labs

It has been an interesting run for TRM Labs since its inception a few years ago. After going through the Y Combinator in 2019, the company has maintained yearly revenue growth of 600% and expanded its team members from four to several dozen people. 

TRM CEO Esteban Castano adds:

 “This round enables TRM to continue to offer the most reliable data and most innovative technology solutions in the market to its customers.”

The overall interest in crypto-compliance by Visa and other players remains rather intriguing. However, these companies acknowledge there is a need for enhancing the trust and security in the crypto ecosystem. The role of sophisticated risk assessment cannot be underestimated.  

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