Token platform TokenSoft is improving its Know Your Business (KYB) practices in the wake of FinCEN amendment to the Bank Secrecy Act by automating the process. What once could take up to 10 days has been cut down to a matter of hours, according to Mason Borda, Founder and CEO of TokenSoft.
Similar to Know Your Customer requirements on exchanges, platforms must identify businesses seeking to issue tokens. According to Borda, some companies do so manually, having companies provide the necessary information via email exchanges. To cut down on the back and forth, TokenSoft automated the process ahead of the effective date for KYB compliance.
The company said it should streamline the investor onboarding process by allowing companies to automate the collection and verification of identity data from players like the authorized signer and beneficial owners of the investment entity.
Still, most token platforms engage in KYB and have their own unique processes to comply, but the key factor in this innovation is speed with accuracy, according to TokenSoft. A fast KYB turnaround can be important to an issuer, since a longer lag time for identity verification can mean waning interest from an investor.
TokenSoft said this completely automated KYB framework is an industry first, since most platforms are utilizing manual processes or a mix of the two. Token platforms CoinList and Harbor did not comment on their KYB frameworks and whether or not they automate their processes.