Customer identification startup Notakey announces ICO Pass, a tool that will solve an issue that ICO organizers face.
Customer identification startup Notakey announces ICO Pass, a tool that will solve an issue that ICO organizers face - the inability to convert up to 50% of their raised financing to fiat currency, due to strict regulations of backer identification.
The Notakey ICO Pass ensures affordable and compliant backer identification through blockchain technology. This identification is compliant with state regulations that require customer due diligence to meet Anti Money Laundering laws, which are defined by the international Financial Action Task Force organization. It will be available on mobile, and the identification fee will be 7eur, compared to competitors' pricing of 230eur.
ICO Pass will reduce the uncertainty that arise as ICOs become increasingly regulated. It ultimately will increase the amount of collected funding that can be converted into fiat currency, as the average amount raised per ICO is 2MM, according to Smith and Crown.
According to the Financial Times, in 2017 until end of October there have bee 211 ICOs, rising 3,5Bn in total. As ICOs increase, so do government regulations, such as China's public ICO ban as well as the EU's statement that ICO funding will fall under Financial Instrument regulations. The founding team has collaborated with regulators from countries that have passed such regulations to ensure compliancy, and ICO Pass will continue to develop the tool to be compliant with all state regulations, as they come to light.
Along with the launch of ICO Pass, Notakey will also be launching their own ICO, with the goal of raising an initial seed round of EUR 490,000. Additional funding being sought in the future, though with a less attractive offer. The subsequent funding round will be used to develop a product that will be offered to banks.
Notakey was founded in 2016 by Janis Kirsteins, Gints Kirsteins and Janis Graubins. The founders had participated in creating the architecture for the Latvian state ID card and e-signature system. When the European Parliament adopted the revised Directive on Payment Services (or PSD2) in 2015, the founders saw an opportunity to solve a need for many financial institution at the time. Financial companies were required to adopt strong two-factor authentication for bank login and transaction approval - there was a void of solutions that were able to solve these problems at scale. Notakey was founded with a mission to come up with the most secure and convenient solution for meeting the regulatory requirements.
During two years Notakey has been able to sign major deals with banks and non-banks from Switzerland and Latvia.