CryptoSwift raises €510K to tackle EU’s looming crypto compliance challenge

Tallinn-based CryptoSwift, the compliance infrastructure startup simplifying Travel Rule implementation for crypto companies, has raised a €510,000 pre-seed round to scale its platform ahead of sweeping new EU regulations.

With the Markets in Crypto-Assets (MiCA) regulation and updated FATF guidance becoming mandatory in the EU by the end of 2024, and the transition period ending in 2025, crypto companies are under growing pressure to comply with the Travel Rule.

This rule requires them to collect and share sender and recipient identity information for crypto transactions, much like SWIFT does in traditional finance. Yet most of the industry is still unprepared.

Indrek Ulst, founder of CryptoSwift, shared:

There is currently no precise data available detailing the exact number of Crypto-Asset Service Providers (CASPs) in the European Union that are fully compliant with the Travel Rule. However, based on available market research and industry insights, it is estimated that at least two-thirds of CASPs have yet to achieve full compliance.

CryptoSwift offers a plug-and-play compliance solution with the lightest integration effort on the market.

The startup has already signed partnerships with industry players like AML Watcher, Global Ledger, Scorechain, and Fraud.com. Early clients include Change Invest, Crypto2Cash, Crypto Voucher, and more.

The round was backed by early-stage investors Tenity, Startup Wise Guys, DEPO Ventures, and a group of industry angels.

Kevin Chavanne, Investment Manager at Tenity, emphasised that as crypto becomes mainstream, the most successful players will be those that integrate seamlessly with the regulated financial system. He added:

CryptoSwift is enabling that shift by making transactions transparent, compliant, and seamless. Their early traction and dual fluency in tech and regulation position them perfectly for what comes next.

The funding will be used to grow the team, expand market reach, and accelerate adoption across the EU.

Lead image: Indrek Ulst, CryptoSwift founder | Photo: Uncredited