Scorechain Raises $570k for European Bitcoin Compliance Solution

Bitcoin compliance solutions provider Scorechain has raised €500,000 ($570,000) in seed funding.

Oct 12, 2015 at 2:40 p.m. UTC
Updated Sep 11, 2021 at 11:56 a.m. UTC
CoinDesk - Unknown

scorechain

Bitcoin compliance solutions provider Scorechain has raised €500,000 ($570,000) in seed funding from an undisclosed group of angel investors.

The Luxembourg-based startup is seeking to target both bitcoin companies and traditional financial institutions with a suite of services that help clients meet regulatory and compliance requirements, through business intelligence and risk analysis tools that illuminate transaction histories on the blockchain.

CEO Pierre Gerard suggested Scorechain will attempt to appeal to bitcoin startups that are beginning to implement more stringent know-your-customer and anti-money laundering policies by offering a web interface as well as an API.

However, Gerard also sees the service being useful for a market that is increasingly interested in the digital currency industry – major financial institutions.

Gerard told CoinDesk:

"Banks are learning more about customers using bitcoin. If someone is coming with €100,000 in cash, pretending it's coming from bitcoin, we can allow a compliance officer from a bank to check if the person is telling the truth. All the banks today need to check where the money is coming from, if it's from bitcoin, we provide this."

Gerard said Scorechain's solution is optimized for the European market, and that its service is able to build custom reports for companies in different nations, with the information it collects varying depending on local regulatory needs.

The startup's emphasis on Europe, he said, will also be beneficial, given there is less competition among compliance providers than in the US, which is home to startups such as IdentityMind.

Today, Scorechain has four full-time employees, according to its CEO, with funding being used to expand the team to six. The service is currently operating in free beta, though Gerard said the company is now exploring pricing models.

Blockchain analysis

Users of the service who want to obtain more information about a bitcoin transaction or wallet address are able to leverage its "Lookup" tool to see details, such as how much bitcoin was sent and the fees that were paid to include the transaction on the blockchain.

Both metrics are provided in a colorful screen layout alongside the date on which the transaction was confirmed and a chart that connects that transaction ID or wallet address to past and future blockchain movements using cluster detection and address identification.

The following example shows the Scorechain analysis for one transaction where funds had previously moved through the online black market Agora.

CoinDesk - Unknown

scorechain, transaction

Gerard said there are some limitations to the service, as it currently relies on public information from sources such as Reddit and Pastebin to link bitcoin addresses to specific entities.

The CEO said Scorechain may work to obtain information from other companies in the industry, like bitcoin exchanges, but suggested it still needs to determine how such potentially sensitive customer information would need to be managed.

Images via Scorechain

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
How the Metaverse Could Be a Game-Changer for NFT Gaming

Rather than letting players port weapons or powers between games, non-fungible tokens will more likely serve as building blocks for new games and virtual worlds. This piece is part of CoinDesk's Metaverse Week.

Rather than letting players port weapons or powers between games, non-fungible tokens will more likely serve as building blocks for new games and virtual worlds. This piece is part of CoinDesk's Metaverse Week.

CoinDesk - Unknown
2
CoinDesk - Unknown
Arthur Hayes, ex CEO de BitMEX, es sentenciado a 2 años de libertad condicional

Hayes se declaró culpable de un cargo de violación de la Ley de Secreto Bancario (BSA) en febrero y enfrentó una sentencia de hasta 12 meses de prisión.

Hayes se declaró culpable de un cargo de violación de la Ley de Secreto Bancario (BSA) en febrero y enfrentó una sentencia de hasta 12 meses de prisión.

CoinDesk - Unknown
3
CoinDesk - Unknown
Lockheed Martin, Filecoin Foundation to Explore Hosting Blockchain Nodes in Space

The two plan to identify a test mission by August 2022.

The two plan to identify a test mission by August 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Get Started With DESK: How to Set Up Your Wallet

Learn the first step toward using CoinDesk's relaunched social token.

Learn the first step toward using CoinDesk's relaunched social token.

CoinDesk - Unknown