Glossary > RegTech
In 2015, the UK’s Financial Conduct Authority (FCA) referred RegTech or Regulatory Technology as “A subset of fintech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.” In other words, any technology that ensures a company meets its regulatory requirements.
RegTech is now engaged in machine learning, natural language processing, blockchain, AI, and other technologies in order to bring the influence of digital transformation to the world of compliance.
As mentioned, RegTech means regulatory technology. So, RegTech companies are companies using technology to manage regulatory processes for the financial industry, often through SaaS (Software as a Service). They will help financial institutions in compliance, monitoring, and reporting for example.
RegTech is gaining traction with the implementation of the European Parliament’s MiFID II legislation in January 2018. The regulation ensures consistency between investment services within the European Economic Area (EEA). Many of these also positively impact several areas, including Basel II, Solvency II, PSD II, the General Data Protection Regulation (GDPR), the Dodd-Frank Wall Street Reform, Consumer Protection Act and MiCA.
Scorechain is a RegTech and aims at helping companies operating with or onboarding cryptocurrencies to comply with the fast-evolving regulations of the crypto market. The solution provides crypto monitoring and risk assessment tools.
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Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.