On Wednesday, February 7th, 2018, the FinTech/RegTech blockchain platform Securrency announced it would be entering a strategic partnership with ID DataWeb, a Washington D.C.-based company at the forefront of revolutionizing identity security services.
Who are they?
Securrency defines itself as “a combined FinTech/RegTech platform that enables the free trading of previously illiquid asset classes.” Their aim is to improve the security, transparency, efficiency, and accessibility of financial services through integration of “recent advances in distributed ledger technologies, payment gateways, and security frameworks.” With all the confusion that Know Your Customer (KYC) and Anti-Money Laundering (AML) laws entail, Securrency ensures that companies who seek to start Initial Coin Offerings (ICO) are in line with those regulations on their behalf so that clients can focus more on the business aspects.
ID DataWeb is an integrated human identity security platform that continuously authenticates individuals’ identities though use of their Adaptive Authentication Solution, which consistently refreshes users’ identities and verifies any changes. Instead of requiring an investor to keep track of multiple login passwords and undergoing several sets of compliance documentation, ID DataWeb’s network allows for a singular login that grants access to Personally Identifiable Information (PII), biometric verification, and government documents (their network spans over 70 identity services across more than 100 countries). In 2012, they were awarded a grant from the “National Institute of Standards and Technology to implement pilots for the National Strategy for Trusted Identities in Cyberspace.”
What this partnership means
The partnership will enable Securrency to provide faster, more secure investor verification, along with helping companies remain compliant with KYC and AML regulations. CEO of Securrecy, Dan Doney, says, “While the regulatory landscape remains uncertain, it is clear that there is a need for blockchain financial platforms that offer built-in accreditation and compliance services.” He believes that “by integrating ID DataWeb’s patented identity verification services into the core of the Securrency platform, companies conducting an ICO or offering tokenized investments can leverage a fully automated registration and compliance process that is in line with current securities regulation.”
Why this partnership is necessary
Not every company or investor fully understands the regulations that ICOs require, and China went so far as to ban the entire concept of cryptocurrency exchanges. On February 6th, 2018, lawmakers and regulators voiced their concerns regarding this matter at a U.S. Senate hearing. Jay Clayton, chairman of the the Securities and Exchange Commission (SEC) noted, “I believe every ICO I’ve seen is a security.”
Senator Elizabeth Warren from Massachusetts asked if any ICO has been subject to SEC registration, to which Clayton responded “Not one.” He further added, “I want to go back to separating ICOs and cryptocurrencies. ICOs that are securities offerings, we should regulate them like we regulate securities offerings. End of story.”
With how ICOs are regulated rather up in the air, the joint venture between Securrency and ID DataWeb will help improve how ICOs are monitored. David Coxe, CEO of ID DataWeb, believes, “Quick and continuous identity verification paired with Dynamic Adaptive Authentication creates the level of trust that is needed to comply with KYC and AML regulations. ID DataWEb’s Attribute Exchange Network (AXN™) in conjunction with Securrency’s RegTech platform ensures the safety of PII and creates a quick and seamless authentication process that is necessary when working with cryptocurrency.”
Securrency’s partnership with ID DataWeb also increases confidence in Securrecy’s platform and benefits the company when it pursues other alliances. Securrency recently notified the public that it would partner with the London Football Exchange (LFE), which wants to develop its own form of cryptocurrency that will create a “fan-driven football community” by providing members with exclusive access to tours, experiences, meet-and-greets, and more. Together, Securrency and ID DataWeb can help LFE resolve Know Your Transaction (KWT) for its audience.
Sam Robinson, partner at the law firm CMS that is overseeing LFE’s cryptocurrency launch, says, “It is very exciting to advice LFE on establishing a business that is aiming to have an impact on the entire football industry using blockchain technology.” Sports is certainly not the only industry that Securrency desires to help revolutionize, though—they are also dedicated supporters of farmers in developing worlds.
Securrency has already-established relationships with MIT and a company known as Ricult. Together, they “set a course for sustainable productivity by establishing a reliable supply chain for agricultural inputs and a secure, accessible micropayment infrastructure backed by Securrency’s low interest micro lending platform… securrency is breaking the cycle of subsistence farming by tripling the annual income of today’s farmer.” Their alliance with ID DataWeb has the potential to help further their social impact by helping investors who wish to provide micro loans and by mitigating fraud.