Advancing AML Excellence: MarketGuard and Scorechain Join Forces

In the dynamic world of cryptocurrencies, compliance has emerged as a critical factor for sustainable growth and widespread adoption. The absence of clear regulations has raised serious concerns, shaking the very foundations of the blockchain industry. It’s crucial not to underestimate the potential for illicit activities like money laundering and terrorist financing to thrive in the crypto market’s shadows.

More importantly, the crypto industry’s failure to proactively address compliance issues has hindered its ability to earn the trust of traditional financial institutions and regulatory bodies. This trust deficit has impeded mainstream acceptance and collaboration. Embracing compliance isn’t merely a regulatory obligation; it’s a fundamental stride toward a brighter and more responsible future for crypto.

Path to a compliant crypto future

Addressing the challenges of compliance in the cryptocurrency space requires a multifaceted approach.

• Firstly, industry stakeholders must actively engage with regulatory bodies to develop clear and coherent frameworks that strike a balance between innovation and security.
• Secondly, the development and adoption of advanced compliance technologies, including AML/KYC software and transaction monitoring tools, will help track and trace transactions, making it harder for illicit activities to thrive.
• Furthermore, education and awareness within the crypto community are paramount. Individuals and organizations must stay informed about evolving regulations and best practices, actively promoting a culture of compliance and fostering a culture of self-regulation.
• Ultimately, the path to a compliant crypto future involves collective efforts, innovative technology, and proactive engagement with regulatory authorities.

MarketGuard — Your robust AML & KYC solution

At MarketGuard, we’re committed to providing an exceptional compliance software solution tailored for Virtual Asset Providers (VASPs). Headquartered in Switzerland, MarketGuard presents an automated AML, KYC, and KYT solution explicitly designed for blockchain enterprises. Our user-friendly plug-and-play system empowers EU and Swiss companies to entrust their customer onboarding, transaction monitoring, and regulatory reporting to MarketGuard, freeing them to focus on their business growth.

With MarketGuard, you gain a robust AML/KYC system that collects and verifies individual, company, and shareholder data while offering automated due diligence, real-time transaction monitoring, and regulatory reporting, ensuring compliance with evolving regulations:

1. Onboarding

Customer onboarding is an integral part of any client business. On the one hand, it must be quick and seamless; on the other, it must be thorough enough to identify potential risks. Besides, automation is crucial for scalability, thus, the risk-scoring methodology must be digitalized into a robust automated identity verification system.

2. Ongoing monitoring

Financial institutions are obliged to have a toolkit in place to ensure that their clients comply with your AML policy on a daily basis. Such a toolkit must monitor in real-time all shareholders, UBOs and key personnel of a client to ensure they are not in sanctions, PEP or other specific lists. In addition, it must send instant notifications of any change in a client's status.

3. Transaction monitoring

Real-time transaction monitoring plays a pivotal role in ensuring robust compliance. There are certain parameters that are worth considering:

• Daily/monthly limit per client
• Payment country risk for fiat and crypto transactions
• Company-related custom risks
• Blockchain transaction scoring and implied risk factors (KYT)

Know Your Transaction (KYT) is an essential component that is aimed at performing on-chain transaction analysis to identify suspicious behavior or fraudulent fiat as well as crypto transactions on various blockchains such as Bitcoin, Ethereum, XRP, Binance Smart Chain, Tezos etc.

4. Regulatory reports

As a result of the automated verification and ongoing monitoring, you will get reliable proof that will help control risks and protect yourself against fraud and regulatory fines. With MarketGuard, you can be confident that all of your clients and operational counterparties comply with regulation frameworks you operate in and your business is safe and secure.

Joining forces with Scorechain

In an effort to enhance its compliance capabilities, MarketGuard has established a strategic partnership with Scorechain, a well-respected leader in blockchain analytics and AML solutions. This collaboration ensures that MarketGuard’s compliance software not only maintains its effectiveness but also stays in sync with the ever-changing regulatory environment, ensuring optimal performance in the fast-evolving cryptocurrency landscape.

Scorechain, a leading Blockchain Analytics provider based in Luxembourg, distinguishes itself in the rapidly transforming realm of cryptocurrency compliance. With a steadfast commitment to data protection and integrity, Scorechain offers several unique selling points including API-Centric Seamlessness, Fully Automated Monitoring, and Anticipatory Threat Detection with Actionable Insights.

Discovering the benefits

The key advantages resulting from this strategic partnership:

• Cutting-edge AML Solutions: Tailored to meet the demands of robust cryptocurrency compliance.
• Profound KYT Monitoring: Ensuring unmatched transparency and responsibility in transactions.
• API-Centric Approach: Designed for seamless integration and future scalability.
• Real-time Transaction Monitoring: Fully automated to provide immediate compliance oversight.

Conclusion

As the industry matures, it becomes increasingly clear that compliance isn’t just a regulatory necessity; it’s a pivotal step towards a brighter and more responsible crypto future. The strategic partnership between MarketGuard and Scorechain exemplifies this commitment to responsible growth. By delivering cutting-edge AML and KYC solutions, this partnership is at the forefront of cryptocurrency compliance. By embracing it, we pave the way for a future where cryptocurrencies seamlessly coexist with traditional financial systems, fostering innovation, security and trust.

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