COMPLY, ZenLedger Launch Digital Asset Trade Monitoring


The New York-based compliance software, consulting and education resource company COMPLY recently announced the launch of a digital asset trade monitoring program. Working with ZenLedger, a blockchain data and tax solution provider, the program delivers what is believed to be the first fully digital compliance solution for the digital asset and cryptocurrency market.

According to the company, this program, “bridges the gap between cryptocurrency compliance and regulatory technology, offering a seamless solution to tackle the evolving challenges in the digital asset space.”

Firms using COMPLY’s Digital Asset Trade Monitoring will now have real-time insight into their employees’ cryptocurrency holdings and transactions. This will give compliance departments the ability to monitor comprehensive monitor trades and potential regulatory violations.

In the past, firms used manual processes to track cryptocurrency trades. Using this tool, firms will be able to automate blockchain and exchange monitoring, supported by turnkey onboarding for all employees, self-service functionality, and easy ongoing maintenance.

Cryptocurrency and other digital assets continue to impact the financial services space and the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) have signaled to the market it will focus closely on the cryptocurrency space. This will lead to a significant increase in compliance needs for individuals and businesses. In recent years, regulators have levied nearly $3 billion in non-compliance fines on cryptocurrency firms. However, a lack of clear regulation in the market has created distinct challenges for many firms, the company explained in its press release.

“Based on COMPLY’s proprietary data, up to 45% of firms require their employees to preclear cryptocurrency trades. However, the lack of automated resources to track such trades and confirm compliance with a firm’s policies has forced the majority of that group to rely 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.”

“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 already live with a number of notable crypto-native enterprises and TradFi institutions who reduced their risk exposure immediately. Ultimately, this solution answers the call for transparency in crypto and accelerates progress towards industry self-regulation.”