ZenLedger announced a new partnership and product integration with COMPLY, the global market leader of compliance software, consulting and education resources for the financial services sector. The launch of COMPLY Digital Asset Trade Monitoring, an innovative compliance solution for the digital asset and cryptocurrency market, powered by ZenLedger, is set to bring much needed transparency to global financial institutions and firms.
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 a software-based solution providing insight into their employees’ cryptocurrency activity similar to more traditional securities. Compared to the traditional, highly manual processes, compliance teams leveraging Digital Asset Trade Monitoring will be able to quickly and effectively implement and maintain blockchain monitoring, supported by streamlined onboarding, enhanced automation, and easy on-going maintenance.
Cryptocurrency and other digital assets have emerged as a dynamic and rapidly evolving sector of the financial industry. 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 both individuals and businesses. In the past year, regulators have levied over $10 billion in non-compliance fines on cryptocurrency 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.”
ZenLedger, a company renowned for its expertise in blockchain analytics and forensic accounting, seeks to bring transparency to the financial industry to further accelerate, and ease, the adoption of digital assets. COMPLY, with its extensive experience in providing configurable compliance solutions to meet the unique requirements of investment management firms, hedge funds, broker-dealers, investment advisers and more, recognizes the pressing need for tailored solutions in the digital asset space, creating the perfect partnership to bring Digital Asset Trade Monitoring to life.
The integration between COMPLY and ZenLedger introduces a comprehensive compliance solution that helps enterprise businesses adhere to evolving SEC and IRS regulations. This innovative partnership not only simplifies the compliance process but also enhances the overall 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.
“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 expecting to go live with a number of notable crypto-native enterprises and TradFi institutions who will reduce 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.
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