Authors: Benjamin Horvath and Wolfgang Männel
Founded in 2015, Scorechain builds crypto-tracking compliance tools used by over 200 customers in 40 countries to combat money laundering (AML), terrorism finance, and other sanctioned activities.
Amongst Scorechain’s clients like PwC or Swisscom are cryptocurrencies companies, exchange platforms, OTC trading desks, private banks, audit and law firms, forensics, and custodians.
The company was founded by the French serial entrepreneurs Pierre Gerard and Laurent Kratz and is today one of the largest and most experienced blockchain analytics companies in Europe.
When we met them, we were intrigued right away by their vision of crypto compliance, their technical sophistication, and the quality of people they manage to attract to their team and mission.
We believe that Scorechain will be among the top three global players in the quickly growing market of blockchain analytics and compliance solutions and will especially benefit from their intimate knowledge of the European market and regulations.
In traditional finance “Behavioral Analytics” is used to analyse whether a specific transaction is suspicious based on elements such as login time, amount, transaction frequencies, etc.
In the Blockchain universe, Know-Your-Transaction (KYT) goes a lot further as the ledgers of the blockchains are completely transparent. Thus, one can exactly backtrace where funds are originating from and if certain wallets have been tagged as suspicious.
The rising complexity of crypto compliance and regulation is paving the way for the implementation of blockchain analytics software across banks, financial service providers, and insurance companies.
The software continuously monitors transactions to automatically trigger alerts in case of any discovered irregularities.
Whereas Know-Your-Customer (KYC) is an (often rather low-tech) standard process where basic information like ID, residence, and source of wealth is translated into a risk score, KYT requires a fully automated AI system that can trigger an alarm resulting in denied transactions, reporting to compliance officials or even a regulatory body based on ongoing transactions.
It can be assumed that overcoming the monetary and reputational risk of non-compliance will be a key growth driver in this rapidly expanding industry.
Capgemini estimates in its World Payment Report that overall compliance was a $200bn market in 2020, the software part of this amounting to $20bn growing at 20% annually. Other industry pundits believe the software market to be twice as large.
Future growth will no doubt be driven by the increasing adoption of crypto assets, a growing number of crypto companies, increased regulation that will apply to more and more players and the entrance of traditional financial institutions in the crypto space.
It’s a great position to be in and Scorechain not only has the right technology and team but most of all satisfied customers and loyal partners.
Scorechain was the first crypto AML provider to read through Decentralized Exchanges transactions to prevent money laundering and terrorism financing.
The current Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, and Tezos. The software can de-anonymize the Blockchain data and connect with sanction lists to provide a risk scoring on digital assets transactions, addresses, and entities. Further blockchains are being added at customer request.
The risk assessment methodology applied by Scorechain has been verified and is fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities.
In addition, Scorechain has a comprehensive database of 700+ Virtual Asset Service Providers (VASP) to assess the credibility of counterparts and edit Risk-AML Scoring for extra due diligence.
If you want to learn about the subject of blockchain analytics, we can highly recommend Scorechain Academy.
Scorechain is a RegTech and Market Information suite of software tools for managing the Risk and Compliance (Anti-Money-Laundering and Know-Your-Transaction) of cryptocurrencies. Since 2015 they have helped more than 200 companies in more than 40 countries to track transaction flows, verify the origin and destination of crypto assets and manage forensic investigations. Scorechain provides high data quality and advanced features for compliance teams:
If you are looking to manage the risks and compliance of cryptocurrencies, book a quick demo with Scorechain. Or follow the company on LinkedIn or visit their website for more information and updates.
Contact: Pierre Gérard, CEO, email@example.com
Blockrocket is an accelerator program and early-stage investor for blockchain startups in Germany. We offer an exclusive ecosystem to help startups, corporates, and investors to leverage the potential of blockchain technology. Since our launch in 2019, we have acquired numerous well-known partners and mentors and handpicked some of the best blockchain startups among 150 applications for our program.
Want to find out more about our program? Then please visit our website or reach out directly to us.
Contact: Benjamin Horvath, Managing Director, firstname.lastname@example.org
BFG Blockchain Founders Group is a company builder and early-stage venture capital investor. Our team comprises academic and regulatory drivers of the blockchain economy, serial entrepreneurs, and venture capitalists. We love to work with outstanding entrepreneurial talents and bring to bear the full support of our network to make them succeed.
Visit our website or reach out directly to us.
Contact: Wolfgang Männel, Senior Partner, email@example.com