Regulatory compliance has been a big topic in the crypto industry for years now, but in most countries, crypto regulations remain extremely vague and shallow. While a lot of individuals, merchants, and other types of businesses have been attracted to the crypto industry due to the surging prices over the last six months, they are only after the opportunity, while the issue of following regulations still hangs in the air, unresolved.
However, this might not be entirely the case, as a new project, called Sekuritance, offers individuals and businesses a CeFi and DeFi RegTech ecosystem, delivering top compliance, regulatory, transaction monitoring and identity management.
What is Sekuritance and How Does it Work?
Sekuritance is a project that offers a RegTech Platform, which is powered by its native cryptocurrency, the SKRT Token. Essentially, the project offers a single platform from which it runs any regulatory, compliance, or monitoring queries and programs, and it offers these services to individuals and services of any size.
This includes every eGRC need, including end-to-end AML/CTF, CECL, FCPA, beneficiary onboarding, vendor management, card processing MFA checks, investor checks, blockchain wallet checks, cyber-risk assessments, and anything else that may be necessary for CeFi and DeFi participation.
This is a rather unique type of platform, unlike any other at this time. More than that, the platform doesn’t only offer solutions — it also offers developers and providers of other RegTech solutions to join its platform in order to offer their existing services, create and list new ones, and further improve these sectors.
So, what exactly can the platform offer? According to what is known, it has a wide array of services, including:
Fully dynamic multi-dimensional Risk Engine
Secure, scalable, and flexible platform
Encryption at rest, as well as during transit
Advanced ‘Holistic Screening Engine
Binary and RESTful APIs
High-speed horizontal scalability
Advantages and Disadvantages of Blockchain Led to a New Approach
As many are likely aware, using blockchain technology definitely does come with countless advantages. It can handle international transactions within minutes — in some cases, even within seconds; it can store massive quantities of data, it is immutable, transparent, and in most cases — safe against hacks.
As such, it can offer a future where tampering with card data, healthcare records, sensitive documents, insurance policies, and other such information would be impossible. However, one big downside of all this is that uploading such massive amounts of data to blockchain is extremely expensive, especially if one of the bigger blockchains are being used. Take Ethereum, for example. Currently, even a single transaction may require fees as high as $50 in order to be processed relatively quickly.
On the bright side, Ethereum is about to receive a major upgrade, known as Ethereum 2.0, which may improve things. But, until that happens, a lot of different, alternative solutions were considered, including the creation of a new blockchain. However, as Sekuritance stressed, this would come with its own downsides, such as lower security, scaling issues, lack of trust, and potential for centralization.
Faced with these choices, the project decided to look at things from a different perspective, which led to an alternate solution — creating a hybrid of both, hardened architecture and tokenized entries in the blockchain, which would verify vault data legitimacy. So far, this is the most realistic method that could satisfy everyone’s needs and expectations, where all checks, vault queries, traces, findings, transaction activity monitoring, and more would be referenced in the blockchain to ensure auditability, and it all revolves around the SKRT token and smart contracts.
It is certainly a unique solution that just might work, at least for the time being. Any other solution would require the blockchain to evolve into something new, which is not excluded — it’s just that the blockchain industry is not there just yet.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.