Cryptocurrency crimes remain a significant concern despite some improvements, with nearly $23.8 billion illicitly transferred in 2022, according to Chainalysis. The ongoing threat of ransomware underlines the need for better safeguards.
Enter Micapass, which has recently secured €240K in funding from SUPER HOW? and Firstpick. Their mission: to develop a decentralized compliance tool with advanced AI-based alerts for suspicious activities and support for multiple blockchains.
As the use of decentralized finance grows, so does the complexity of anti-money laundering (AML) efforts. Criminals exploit weak AML policies to launder money, but Micapass aims to address this issue by offering an on-chain AML compliance tool designed for the DeFi ecosystem. This tool will conduct advanced AML wallet screenings and continuous KYC/AML monitoring to identify bad actors, thereby enhancing regulatory compliance and reducing financial crimes.
With emerging regulations like MiCA in the European Union and similar measures in the UK, South Korea, and Hong Kong, the need for robust AML compliance tools in the crypto market is paramount. Micapass is poised to be at the forefront of this important development.
Gintarė Košubienė, CEO and co-founder of Micapass, emphasized the significance of their mission, stating, "The growing use of DeFi protocols for crime funding is a precedent to develop new anti-money laundering crypto compliance practices." With regulatory changes on the horizon, solutions like Micapass are critical to protecting the integrity of the crypto market and preventing sanctioned entities from exploiting it.