Cryptocurrency compliance and risk management platform TRM has scored $4.2m in a new funding round.
The equity infusion was supported by Initialized Capital, Blockchain Capital, PayPal Ventures, and Y Combinator. Previous backers of TRM Coinbase and Digit also committed to the round.
With the close of the round, the FinTech startup has raised a total of $5.9m in its seed round.
Having secured this new funding, the company is expecting to scale its engineering and data science teams, move into new markets and accelerate product development.
TRM aims to improve the safe adoption of crypto assets by helping financial institutions monitor and mitigate associated risks. Compliance teams can risk-score cryptocurrency-related transactions, customers or partnerships, easing due diligence and regulatory management.
The platform integrates with over a dozen blockchains and analyses billions of virtual asset transactions to identify signs of fraud or money laundering.
Blockchain Capital general partner Spencer Bogart said “TRM provides a solution that every financial institution needs today because they are either establishing plans to directly engage with crypto or because they inevitably have customers or partnerships that are in some way exposed to cryptocurrency transactions.”
At the beginning of 2019, TRM secured a $1.7m in funding from Blockchain Capital, Tapas Capital, Green D Ventures, The MBA Fund and strategic ventures. The capital was raised to support the growth of its team and platform.
Financial institutions and regulators have equally been hesitant towards the adoption of cryptocurrency. Around the world, authorities are exploring legislations and regulations for the digital currency.
Earlier in the month, the US House of Representatives revealed it is looking to vote on how the Commodity Futures Trading Commission (CFTC) should regulate cryptos.
Europe is also actively seeking the implementation of crypto regulations. The Senior Managers and Certification Regime (SM&CR) incorporate a lot of rules towards the digital currency including that they should be held to money laundering laws.
The European Securities and Markets Authority (ESMA) also released its advice to the European Union Institutions on initial coin offerings and how they should be regulated.
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