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Consensys Develops Compliance Service for DeFi Projects

ConsenSys, a New York-based compliance firm run by the Ethereum co-founder, Joseph Lubin, has recently made an announcement. This announcement is in regards to the new compliance service it will release, focusing on transactions that DeFi companies and crypto exchanges conducted on the Ethereum network.

Introducing Streamlined Compliance Solution

According to an article published by Bloomberg on the 8th of June, 2020, ConsenSys, the decentralized application (DApp) development firm, had announced a new service. This service will focus on Decentralized Finance (DeFi) projects, as well as crypto exchanges, allowing them to analyze trades for tokens issued within the Ethereum network. This service will see an emphasis on the regulatory compliance requirements in regards to Know-Your-Customer (KYC) regulations, which has always proved to be a headache for the crypto industry.

Through this service, ConsenSys will be capable of monitoring user transactions across the 280,000-plus coins that are issued on the Ethereum network, with emphasis on exchanges and companies in DeFi.

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Striving For Increased Security On Ethereum

Lex Sokolin of ConsenSys gave a public statement about the matter, as well. He explained that the amount of people developing DApps on the Ethereum network is growing more and more by the day. These people, according to Sokolin, will need this service that ConsenSys will provide as a “Lego piece” to the network. He explained that this service aims to make activity within the DeFi infrastructure far safer, more transparent, and easily traced than before.

Something to take note of, however, is the fact that ConsenSys isn’t entering the compliance market with tokens that were issued on the Bitcoin blockchain. Instead, it seems that ConsenSys will focus only on Ethereum-issued tokens.

A Changing World

The crypto industry at large has been rather spotty in regards to complying with KYC regulations. This comes, in part, from the origins of crypto as a whole, having been proclaimed an anonymous, untraceable source of funds back in its inception. Now, with the world accepting and subsequently regulating the crypto industry, it’s to no surprise that reluctance and push-back is the norm in such cases. Entire coins were developed as an expression of the crypto world’s need to stay anonymous, with even the likes of McAfee creating his own privacy coin: The Ghost coin.

The world is still very much in its infancy stages of crypto integration. With heavyweights like China quickly gearing towards the international release of its DC/EP, it’s only a matter of time before crypto integration is massively accelerated.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.