CryptoSwift Secures €510K for EU Compliance

CryptoSwift’s €510K Pre-Seed Round to Boost Travel Rule Compliance for Crypto Firms

Tallinn-based startup CryptoSwift has secured €510,000 in a pre-seed funding round to expand its platform. The company is focused on simplifying the Travel Rule compliance for crypto companies as they prepare for upcoming EU regulations.

With the Markets in Crypto-Assets (MiCA) regulation and new FATF guidelines becoming mandatory by the end of 2024, crypto businesses face increasing pressure to meet compliance standards. These regulations will require companies to share identity details for crypto transactions, similar to the practices in traditional finance. However, many players in the crypto industry are still unprepared.

Compliance Challenges in the Crypto Industry

Despite the approaching deadlines, accurate data on the number of Crypto-Asset Service Providers (CASPs) in the EU that are compliant with the Travel Rule remains scarce. Industry experts estimate that nearly two-thirds of CASPs are still not fully prepared for the regulations.

CryptoSwift aims to address this challenge with a plug-and-play compliance solution designed for easy integration. The platform is built to help crypto businesses meet the Travel Rule requirements with minimal integration efforts. This move comes at a critical time, with the end of the transition period in 2025 quickly approaching.

Strategic Partnerships and Early Success

CryptoSwift’s platform has already attracted interest from key industry players. The company has signed partnerships with established names such as AML Watcher, Global Ledger, Scorechain, and Fraud.com. Early clients like Change Invest, Crypto2Cash, and Crypto Voucher are also onboard. Travel Rule compliance ensures that crypto companies can safely share transaction details, aligning with EU regulations for crypto.

Founder Indrek Ulst expressed optimism about the company’s growth, pointing out that its compliance solutions offer a unique advantage in an industry where regulations are constantly evolving. Investment from early-stage investors such as Tenity, Startup Wise Guys, and DEPO Ventures further strengthens the company’s ability to scale.

A Vision for Transparent Crypto Transactions

According to Kevin Chavanne, Investment Manager at Tenity, CryptoSwift is playing a pivotal role in helping the crypto sector integrate more seamlessly with the regulated financial system. The company’s focus on transparency, compliance, and ease of use positions it well to thrive in the evolving regulatory landscape. Crypto compliance is becoming increasingly essential as new regulations push crypto firms to adapt to global standards.