The slow trickle of traditional investment into the crypto market may turn into a flood if a new platform launched by blockchain services provider AxiomLevel Technologies makes its desired impact.
AxiomLevel’s investor onboarding platform serves as a finance industry solution that caters toward institutional players with investor registration, verification and management. It contains a comprehensive know your customer (KYC) module, anti-money laundering (AML) compliance modules, and accredited investor verification, as well as a global whitelisting solution for digital wallets.
The Investor Onboarding Platform wants to ensure that every investor who enters the crypto market is not caught unawares or blindsided by any regulatory requirements or issues. It comprehensively outlines and resolves all potential pitfalls related to regulatory compliance and financial industry governance.
Speaking to Bitcoin Magazine, AxiomLevel Founder Raleigh Harbour explains the value and utility that his protocol may offer investors.
“AxiomLevel appeals to two audiences: First, to a company issuing or transacting in a token. The technology provides a high level of confidence of regulatory compliance, while at the same time making the process for their investors and users easy, intuitive and seamless.
“Second, for the investor or user themselves, it will grow to become a verified, self-sovereign transaction ‘passport,’ saving them from having to undergo registration over-and-over again and empowering them to own and control their own identity,” Harbour said.
The Purpose it Serves
Over the past few months, there have been signs that institutional capital is preparing to make its long-awaited entry into the crypto market, the infusion of which could breathe life into an anemic market. The Big Four accounting firms have all announced separate initiatives to prepare for the unique challenge of digital assets tracking and tax compliance, and the Intercontinetal Exchange recently unveiled Bakkt, a crypto point of sale platform and retail ecosystem. In May, Goldman Sachs announced plans to trade bitcoin futures contracts.
Amidst salient news for the market, however, enough lingering regulatory doubt and uncertainty has kept more traditional investors from fully entering the market. A nascent and unexplored market, the dynamic and novel nature of cryptocurrencies make them a headache for regulators and regulated financial firms.
AxiomLevel wants to accelerate adoption by clearing up the regulatory fog for traditional investors and encouraging the space to submit to regulations more readily.
“AxiomLevel’s goal is to provide technology to bridge the gap between traditional finance and digital assets and help the blockchain community proactively embrace the right level of adherence to regulation,” Harbour noted.
Expectedly, tracing the movement of assets that are specifically designed to be untraceable can turn into a regulatory nightmare for investors, which is one of the reasons why large institutions have simply refused to adopt an investment position in the crypto market. Until reliable fail-safes are in place, the risk far outweighs the reward.
Explaining how AxiomLevel mitigates this risk, Co-Founder Umesh Lalwani said AxiomLevel plans to make it easy for “companies to embrace regulatory trends” in the space.
“By screening and verifying potential retail and institutional investors, we help to ensure that securities and digital currencies can be accessed in a highly compliant manner, thereby increasing the security, transparency and trustworthiness of transactions,” he noted.
AxiomLevel provides a measure of risk assurance for investors, giving them a portal to conduct their AML, KYC and Accredited Investor Verification “in a unified, intuitive workflow.” This data is then tied to an investor’s digital wallet address, enabling regulatory compliance within a digital asset context.
The platform can be white-labeled to match the issuer’s brand, and all data is fully encrypted. The solution also provides a comprehensive dashboard for issuers, advisors and financial institutions.
The dashboard allows customers to track the registration status of the platform’s global investor base, provides analytics for prioritizing valuable investor relationships and leverages time-series data to evaluate the ROI (return on investment) of marketing and outreach efforts.
Potential investors can find out more about the AxiomLevel Investor Onboarding Platform here.