Pioneering solution provides real-time insight into employees' cryptocurrency holdings and transactions
NEW YORK, Dec. 5, 2023 /PRNewswire/ -- COMPLY, the global market leader of compliance software, consulting and education resources for the financial services sector, announced today the launch of COMPLY Digital Asset Trade Monitoring, an innovative compliance solution for the digital asset and cryptocurrency market, made possible through COMPLY's new partnership with ZenLedger, the industry-leading blockchain data and tax solution.
This first-of-its-kind offering bridges the gap between cryptocurrency compliance and regulatory technology, offering a seamless solution to tackle the evolving challenges in the digital asset space. With Digital Asset Trade Monitoring, firms have access to a software solution that provides real-time insight into their employees' cryptocurrency holdings and transactions, enabling comprehensive monitoring and violation tracking. Firms have historically employed manual processes to track cryptocurrency trades, whereas compliance teams leveraging COMPLY's Digital Asset Trade Monitoring will be able to automate blockchain and exchange monitoring, supported by turnkey onboarding for all employees, self-service functionality, and easy ongoing maintenance.
Cryptocurrency and other digital assets have emerged as a dynamic and rapidly evolving financial industry sector. Regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) have increasingly scrutinized the cryptocurrency space, leading to a significant increase in compliance needs for individuals and businesses. In recent years, regulators have levied nearly $3 billion in non-compliance fines on cryptocurrency firms. However, a lack of clear regulation in the market has created distinct challenges for many firms.
"Based on COMPLY's proprietary data, up to 45% of firms require their employees to preclear cryptocurrency trades. However, given the lack of automated resources to track such trades and confirm compliance with a firm's policies, the majority of that group has likely relied on manual processes. As cryptocurrency popularity continues to surge, and regulatory pressures on these assets increase, firms will need technology-backed solutions," said David Bliss, COMPLY's Chief Product Officer. "The launch of COMPLY's Digital Asset Trade Monitoring is a direct answer to the challenges our clients face in today's evolving market. Financial services firms did not have a real-time, automated solution for digital asset monitoring, and were forced to conduct the process manually, relying on employee-provided data such as cryptocurrency wallet screenshot uploads. As a market leader and a CCO's first call for compliance resources, we are taking proactive steps to address the evolution of the financial landscape – and the heightened compliance requirements – which come with new technological advancements."
COMPLY, with its extensive experience in providing configurable compliance solutions to meet the unique requirements of private equity firms, hedge funds, broker-dealers, investment advisers and more, recognizes the pressing need for tailored solutions in the digital asset space. Leveraging its expertise, COMPLY has embarked on a groundbreaking journey with Digital Asset Trade Monitoring, powered by its integration with ZenLedger, a company renowned for its expertise in blockchain analytics and forensic accounting.
Integrating COMPLY and ZenLedger introduces a comprehensive compliance solution that helps enterprise businesses adhere to evolving SEC and IRS regulations. This innovative partnership simplifies the compliance process and enhances the overall trading experience for cryptocurrency market participants.
Digital Asset Trade Monitoring offers:
- Pioneering Integration: A fully integrated Digital Asset Trade Monitoring solution addresses the concerning gap between compliance and the cryptocurrency industry.
- Streamlined Registration and Monitoring: With streamlined digital asset import, the new unified platform will ensure total transparency for employers to comply with current and future SEC or IRS regulations.
- Real-Time Accuracy: ZenLedger's best-in-class ingestion engine provides real-time accuracy with comprehensive coverage across various digital asset types, wallets, and exchanges
"Real-time monitoring is a significant leap towards simplified, standard enterprise compliance with expected digital asset regulations," says Jonté Harrell, ZenLedger Chief Financial Officer. "We're already live with a number of notable crypto-native enterprises and TradFi institutions who reduced their risk exposure immediately. Ultimately, this solution answers the call for transparency in crypto and accelerates progress towards industry self-regulation."
As global adoption grows and regulation continues to intensify, COMPLY and ZenLedger's partnership is a groundbreaking step towards providing a vital solution that simplifies compliance processes and ensures that individuals and businesses are well-prepared for the evolving regulatory landscape.
As a global market leader in regulatory compliance solutions, COMPLY combines the power of regulatory technology, services and education to empower Chief Compliance Officers (CCOs) and compliance professionals to easily navigate the regulatory landscape. COMPLY enables firms to scale their growth, while remaining vigilant in their compliance efforts by providing solutions designed to manage the burden of complex compliance tasks. Our deep bench of industry expertise – which includes expansive knowledge in technology enablement and regulatory compliance protocols and processes from our product portfolio offerings ComplySci, RIA in a Box and NRS – supports more than 7,000 clients, including investment management firms, private equity firms, hedge funds, broker-dealers, registered investment advisers and other financial service sector participants.
COMPLY continually supports clients in their work to proactively address core compliance challenges – minimizing risk, addressing critical priorities and meeting new demands as the industry evolves and the firm scales.
ZenLedger aggregates user transaction information across thousands of exchanges, wallets, and tokens into one simple dashboard, making it easy to calculate personal crypto taxes, audits, or investigations. ZenLedger helps cryptocurrency investors, tax professionals, and enterprises stay compliant with integration support for over 400+ exchanges, 40+ blockchains, 20+ DeFi protocols, NFTs, and all wallets. Backed by Parafi, Mark Cuban, Bloccelerate, Vestigo Ventures, and other leading investors in venture capital.