Bitcoin compliance solutions provider Scorechain raises $570,000 in seed funding

Bitcoin compliance solutions provider Scorechain has raised €500,000 (about $570,000) in seed funding, but has not disclosed the identity of its investors.

Scorechain, headquartered in Luxembourg, is a company dedicated to providing Bitcoin companies and traditional financial institutions with a full range of services to help clients meet regulatory and compliance requirements by using business intelligence and risk analysis tools to visualize transaction history on the blockchain.

Scorechain CEO彼埃尔•热拉尔said that more and more Bitcoin startups are beginning to implement stricter "know your customer" and "anti-money laundering" policies. Scorechain has seen this market demand and can currently provide these companies with a web interface and an API (application programming interface).

In addition, Gerard also said that Scorechain’s services are also useful for financial institutions that are interested in getting involved in the digital currency industry.

Gerard told CoinDesk:

"Banks are starting to understand who is using Bitcoin. If someone comes to the bank with 100,000 euros and the money is actually in Bitcoin, we can help the bank's compliance officer verify the source of the funds. Because all banks have to find out where the money comes from, and if the money comes from Bitcoin, then we can provide verification services."

Gerard said that the solution provided by Scorechain is aimed at the European market, and its service can build customized reports for companies from different countries to collect regulatory information from different places.

Gerard explained that one of the reasons for focusing on the European market is that there are currently very few service companies like Scorechain in Europe compared to the United States, while companies similar to Scorechain such as IdentityMind have already emerged in the United States.

Currently, Scorechain has 4 full-time employees. Gerard said that with the successful financing, they will expand the company team to 6 people. Scorechain service is currently in the free testing phase, and the company is discussing the pricing model.

Blockchain Analysis

Scorechain users who want more information about a bitcoin transaction or a bitcoin wallet address can use Scorechain's "lookup" tool to view details, such as how many bitcoins were sent and how much transaction fees were paid.

Both indicators are presented on a colorful display with the date the transaction was confirmed, using cluster detection and address identification to display a chart connecting a Bitcoin transaction ID or wallet address to past and future blockchain history.

Below is an example of Scorechain analyzing a transaction where funds previously flowed through the darknet market Agora.

Gerard said the Scorechain service has some limitations because it currently links bitcoin addresses to specific entities using information from Reddit and Pastebin.

In addition, according to Gerard, Scorechain can also obtain information from other companies in the industry, such as Bitcoin exchanges, but Gerard said the prerequisite for doing so is to determine how to manage this potentially sensitive customer information.