It's no secret that business is undergoing fast change. Companies need to adapt when new technologies, like smart contracts, emerge to remain competitive. A crucial part of this adaptation process is ensuring compliance with regulations. This is where a company's KYC (Know Your Customer) process comes into play.
To ensure that your company is compliant, working with a reputable KYC provider is essential. This blog article discusses the benefits of using a KYC service with some of the top 5 companies for 2023.
What are Smart Contracts?
A smart contract is a protocol simplifying, confirming, or upholding the terms of a contract throughout its negotiation or execution. Nick Szabo first proposed smart contracts in 1996.
Financial derivatives, commodities trading, peer-to-peer energy trading, and other transactions with software-encoded terms are examples of smart contracts.
Smart contracts allow transactions without needing a third party, such as a bank or lawyer. This means that they have the potential to speed up transactions, reduce costs, and increase security.
For example, a smart contract might transfer the property title immediately if the buyer pays.
Why Do You Need a Smart Contract Audit?
Get your smart contract code audited if you're launching a new coin or token. This will ensure that your contract is secure and free of any vulnerabilities.
A smart contract audit will help to identify any potential issues that could arise during the execution of the contract. This is important to avoid any financial losses or legal problems.
Many firms offer smart contract audit services. However, choosing a firm with experience and a good reputation is essential.
Cryptocurrency and blockchain technology are still in their early stages of development. Therefore, choosing a firm that is well-versed in this area and can provide a comprehensive audit is essential.
What Is KYC?
In the world of cryptocurrencies, KYC stands for “Know Your Customer” or “Know Your Client.” It is a process that exchanges use to verify the identity of their users. This is necessary to comply with regulations and prevent money laundering and other illegal activities.
KYC is also a way to enable a team behind a crypto project to have its identity certified. This is important for building trust with the community and investors.
With crypto frauds on the rise, verifying a team's authentic purpose when releasing a new token or currency is crucial.
How Can Companies Ensure Compliance With Regulations?
As many know, most cryptocurrencies live in an unregulated space. This creates tremendous risk for companies that must comply with specific regulations. Among these, we could mention the Sarbanes-Oxley Act (SOX) or the Gramm-Leach-Bliley Act (GLBA).
Without regulatory guidelines, organizations must ponder how to comply while employing crypto.
The first step is to develop a compliance strategy that considers the specific regulations that apply to your company. You should work with compliance professionals to ensure a solid understanding of the requirements and their use in your business. Once you clearly understand the regulations, you can develop a compliance plan.
There are several things that you should consider when developing your compliance plan:
- What internal controls need to be put in place to ensure compliance?
- What policies and procedures need to exist in your project?
- How will you monitor compliance?
- What training needs do you need to provide to employees?
If everything seems hard to grasp, you should know that companies are ready to answer most of your questions. These companies will want to help you, as it’s in their best interest that the industry succeeds.
The Benefits of Working with a Smart Contract Audit & KYC Company
As the crypto industry continues to grow and evolve, so do the needs of businesses operating within it. One area that has seen a lot of change and development in recent years is compliance.
Crypto firms must keep up with changing legislation to be compliant. This is where working with a smart contract audit & KYC company can be highly beneficial.
A good crypto compliance company will have an up-to-date team of experts with all the latest changes in the industry. They will advise you on what steps you need to take to ensure that your business is compliant. They can also help you to set up processes and systems to make compliance easier for you and your team.
In addition, a smart contract audit & KYC company can also provide valuable insights into the crypto industry. This can be extremely helpful if you want to expand your business or enter new markets. The good crypto compliance company team will have a wealth of experience and knowledge you can tap into.
Working with a smart contract audit & KYC business may assist with compliance and crypto industry understanding.
The Top 5 Smart Contract Audit & KYC Companies in 2023
Let's look at the top 5 crypto companies that will make headlines in 2023.
#1. SolidProof
SolidProof delivers smart contract audits, KYC verification, and crypto-project marketing services. This German company is well-known in the industry for its high standards and comprehensive services.
SolidProof helps new projects launch with less risk and transparency by providing these services.
By reading one of the SolidProof reports, it's clear to see the detail and dedication that goes into each project. The company's audit process is comprehensive and meticulous, starting with requesting an audit and submitting the contract to the company.
Specifically, you can expect either "critical," "medium," or "low" findings in the report. Critical findings are significant vulnerabilities that can result in losing all invested funds or complete control over the smart contract. Medium and low findings are still valid but not as severe.
After releasing the report, the audited project's development team will cooperate with SolidProof to ensure the vulnerabilities are closed. Once the audit process is over, the company will deliver an audit report, including a certificate and additional marketing material.
In addition to crypto projects, SolidProof offers marketing services to help show that the project is legitimate. The project’s website highlights PR, influencer marketing, YouTube, social media, viral/shilling, and email marketing services.
#2. Certik
Certik is another name that you have undoubtedly heard in the past. They are one of the crypto world's most popular security companies. They help to secure crypto projects by auditing their smart contracts and providing KYC services.
In 2020, they raised several millions of USD in seed funding from some of the biggest names in crypto. These included Binance, Coinbase Ventures, and Sequoia China.
In 2021, they raised further capital in a Series A funding round led by Insight Partners. They are now one of the most well-funded crypto startups out there.
Certik's vision is to create a "certification ecosystem" that you may use to certify smart contracts and traditional software applications.
Another aspect of their business is KYC services. "CertiK Chain” began automating the KYC procedure for crypto exchanges and companies in 2020. This strategy has enabled them to become one of the leading crypto KYC providers.
They have also launched a product called "CertiKShield," which is a smart contract insurance policy. It aims to protect users from rug pulls and other scams.
They are among the most active companies in the space and are always coming up with new products and services.
#3. Hacken
Hacken represents another project focused on crypto cybersecurity. They offer a crypto exchange, smart contracts, and dApp security audits. The company started its business in Ukraine in 2017, and its team has a strong background in blockchain technology.
They are a member of the Enterprise Ethereum Alliance and have partnerships with companies such as CoinGecko, Huobi, and Binance.
In 2020, they launched hPass, a password manager for crypto wallets, and hVPN, a VPN service for crypto users.
Other vital developments from Hacken include:
The release of their crypto exchange ranking in 2019: The first-ever crypto exchange ranking that assesses the security, compliance, and technical risks of exchanges. The launch of CERtification, a crypto project certification service, in 2020 assesses crypto projects’ security, compliance, and technical risks.
The introduction of their new marketing vision in 2021: Hacken will focus on becoming the leading crypto cybersecurity company in the world.The opening of an office in Lisbon, Portugal, in 2022: The move signals Hacken’s commitment to expanding its international reach. The choice comes from a clear geopolitical reason following the war between Russia and Ukraine.
As it is clear from the team’s strategy, Hacken focuses on becoming a leading crypto security company in the space. As one of the leading crypto cybersecurity companies, Hacken is well-positioned to continue its growth in the coming years.
#4. QuillAudits
QuillAudits managed to become one of the most popular crypto KYC providers in a very short time. Since starting their services in mid-2018, they have helped over 100 projects with their KYC needs.
The company offers a full range of crypto KYC services. Among these, we find audits on Ethereum, Polygon, Binance Smart Chain, Solana, NEAR, Algorand, and Tezos. They also offer due diligence on DeFi projects, NFTs, rug pulls, and blockchain-based applications.
One of the things setting this company apart from other crypto KYC providers is its commitment to security. They have a team of security experts who conduct regular audits and testing to ensure their systems are secure.
Reputation, trust, and a prominent investor base are some of the things that QuillAudits can help you with. This is an excellent option if you're looking for a reputable and reliable crypto KYC provider.
QuillAudits is an excellent example of a crypto KYC provider that can help you with more than just KYC. They offer services to help you secure your project and ensure it's compliant with all the necessary regulations.
If you're looking for a one-stop shop for all your crypto compliance needs, QuillAudits is a great option to consider.
#5. ConsenSys Diligence
There is a high chance you have already heard about ConsenSys Diligence. They are one of the world's leading smart contract security companies. Over the years, they have audited some of the most popular projects in crypto.
ConsenSys Diligence is a team of experienced developers, auditors, and security researchers. They offer a full suite of services, including smart contract security audits, application security assessments, and developer training.
In addition to this, ConsenSys Diligence is also a founding member of the Ethereum Security Alliance (ESA). This is a consortium of companies and individuals working together to improve the security of Ethereum.
Here are a few of the tools that you may find in this project's ecosystem:
- MythX: A platform that provides security analysis for Ethereum smart contracts.
- Surya: A tool that aids in understanding and visualizing Solidity smart contracts.
- Karl: A monitor for Ethereum smart contracts that checks for security vulnerabilities using the Mythril detection engine.
- Theo: An exploitation tool with a Metasploit-like interface for Ethereum smart contracts.
- SWC Registry: The Smart Contract Weakness Classification Registry implements the weakness classification scheme proposed in EIP-1470.
- Ethereum Advance Tools: A set of advanced tools for Ethereum development, debugging, and security.
Our Conclusions - A Market No One Can Ignore
As crypto and blockchain technology become more popular and widespread, the need for crypto security services will only grow. Many companies are providing these services, and we expect to see many more enter the space in the coming years.
All the companies mentioned in this article are well-positioned to grow in the coming years. They all have strong reputations, a commitment to security, and a proven track record.
Also published here.