AML compliance on-chain solution for DeFi

Description

One of the biggest challenges to the adoption of Blockchain Technology is the regulated world of compliance, namely AML and KYC (Anti-money Laundering and Know Your Customer). In a world of Decentralised technology – who is responsible for this and how is this completed to help keep the customer/user happy (i.e with privacy) and keep the regulators happy (i.e that illicit transactions are not being made)

Welcome to Micapass – AML compliance on-chain solution for DeFi. We help to create a safer blockchain economy by being gatekeeper of crypto AML compliance, blockchain analytics and illicit asset tracing

  • User centric: get micapass once – use many times across different DeFi services.
  • B2B2C: Decentralization by design to ensure AML costs covered by users.
  • 2 in 1: One seamless DeFi friendly integration for crypto AML & ongoing person KYC/AML screening.

More than 10 years Decentralized Finance (DeFi) has been unregulated, it ends in 2024.
Current AML solutions are not adapted for DeFi, micapass is built for it.
There are repetitive KYC, privacy, data breach concerns, micapass beats them all with digital identity approach.

Key problem – how to be compliant without giving up on true decentralization?

Blockchain native DeFi apps needs DeFi friendly AML solutions: no dashboard, no API, no sensitive data handling. micapass empowers digital identity and pushes compliance to the edge: enabling users to prove that they are good actors without disclosing their personal identity information. micapass is design and build for DeFi.

Incentivizing the users and DeFi protocols

Micapass Users will benefit from being able to see their Micascore “DeFi risk score” – how risky is my wallet and investments – this is akin to a credit score report where the DeFi User will be able to assess the risk of their wallet

There are larger benefits for the DeFi protocol with the data which allows them to assess “how much risky activity is on my platform” and what is the overall level of risk for each area

Gintarė Košubienė, CEO and co-founder of Micapass, emphasizes the need for innovative solutions. Micapass is working on tools to shift the focus from isolated entities to a customer-centric approach, using on-chain KYC and continuous screening of cryptocurrency wallets to prevent sanctioned actors, especially those involved in fraudulent activities, from engaging in crypto transactions. 

Our innovative solution allows people to undergo KYC/AML processes without disclosing personal data to virtual assets service providers.  We achieve this by saving evidence of the AML screening in the user’s digital identity, it’s like a stamp on-chain that you are a good actor according to AML screening results. There’s no need to retain information about who the person is without sufficient “must to know” request by legal forces.

Gintarė Košubienė, CEO and co-founder of Micapass
Benefits & Outcomes

Micapass addresses users’ reluctance to disclose their data, by developing technology that combines real-time wallet screening with KYC processes, shifting the verification responsibility to users.

This allows them to privately verify their compliance and keep their personal data off-chain, using smart contract-based identities for AML status checks

  • Enable users to prove their compliance within protocols
  • Are vital in maintaining data privacy
  • Ensure platforms are used by compliant actors, reducing penalty risks
  • Web3 integration at SC level (true / false), API on-request
  • No sensitive data is stored on client’s side, just proofs of evidence
  • Customizable risk threshold & proofs
  • Works with multiple EVM-based chains

Micapass progress:

  • Winners in TecHUB pre-incubator Vilnius
  • Winners in StartupFair Fintech Capital
  • One of TOP 10 out of 500 at EBC Barcelona
  • Trusted by SUPER HOW? startup venture builder
  • Trusted by FIRSTPICK accelerator

There is great success from the 3 MONTHS EARLY ADOPTERS CAMPAIGN – where users benefit from being able to see their Micascore “DeFi risk score”

  • 12 000 users
  • 3 B2B partnerships in DeFi
Links
Further Info

At the moment, micapass is EVM based solution, build on ERC734/735 identity standard, but solution could be easily adopted to any DID enabled ledger, such as XRPL.

Status

The project is in early stages and growing rapidly.

This Use Case was submitted to CBRC in February 2024 and Verified by Antony

The CBRC Score of 92 has been awarded: “Within the Crypto investment world (as with traditional Finance) one view of the truth/transaction is critical. The requirements of the regulated environment we operate in, means that knowing the “ends of the transaction” i.e the sender and the receiver, are non-negotiable. What Micapass is working on, will help the DeFi world grow quickly by safely and securely onboarding users – using the latest KYC and AML approaches and partners. Whilst ensuring the users credentials are kept private. With an additional bonus of the Micascore which will help the user (and DeFi protocol) understand their wallet/protocol risk better”

To Verify the Project on Blockchain Scan the QR code:

and to verify live on Ledger:

Click Here

A more detailed understanding of the CBRC Score is available on Request

© Antony Welfare 2024

CBRC