Passbase Raises $13.5M to Build ID Verification System for Crypto Firms

Passbase helps companies comply with anti-money laundering and know-your-customer regulations.

AccessTimeIconDec 8, 2021 at 6:17 p.m. UTC
Updated May 11, 2023 at 3:59 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Passbase, an identity verification infrastructure company, has raised $13.5 million in a funding round led by Costanoa Ventures. The startup will use the funds to scale its operations and build a policy and workflow manager that sits on top of its ID verification system.

The capital came from a new $10 million Series A round and a previously unannounced $3.5 million seed round. Other participating investors included Lakestar, Eniac Ventures and Cowboy Ventures.

  • Key Events You Shouldn't Miss at Consensus 2024
    02:13
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    11:19
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    13:29
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    07:15
    What's Next for FIT21?
  • Passbase helps companies automate the identity verification process to meet regulations for anti-money laundering (AML), know your customer (KYC) and age restriction requirements around the world. The developer-focused product covers over 6,000 IDs across 190 countries and 15 languages.

    The new policy and workflow manager offers industry-specific policy templates and privacy-centric infrastructure to help companies keep up with fast-moving and complex regulatory environments worldwide.

    Silicon Valley-based Passbase was launched in 2018 after the founders’ previous app, the crypto wallet Coinance, ran into regulatory hurdles.

    “We built Passbase to solve our own problem back in 2018 to allow users to manage their digital identities across different cryptocurrency platforms in a compliant way,” said Passbase CEO and co-founder Dave McGibbon in the press release. “This round of funding brings us one step closer to being the trusted identity solution for Web 3 companies like Coinance.”

    Identity verification regulations have proven challenging for cryptocurrency companies. Over the summer, a group of crypto giants that included Coinbase and Gemini drafted a solution for the Financial Action Task Force (FATF) provision called the “travel rule,” which requires the sharing of a customer’s personally identifiable information when regulated firms move crypto around.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.