Know Your Business – TokenSoft KYB
Businesses looking to host an STO just got some excellent news this week. The popular tokenized securities platform, TokenSoft officially announced the release of its Know Your Business (KYB) software integration. The new software trims down the time it takes for businesses to get approval to host an STO significantly through the use of automation and blockchain technology.
News of the integration came via a press release in which the company explained that it completed Beta testing of the new software without a hitch. TokenSoft worked meticulously to finish the protocol prior to a major ruling's effective date. Now it appears as if all their hard work is set to pay off in a major way.
Its All About Timing – TokenSoft KYB
This month the amended FinCEN CDD Final Rule of 2018 legislation's is set to hit its effective date. Notably, the FinCEN amendment is an addition to the Bank Secrecy Act. These laws include a wide variety of business data requirements prior to hosting a crowdfunding campaign.
The updated ruling sets out what information business must provide to host a blockchain-based crowdfunding campaign. Previously, businesses hosting STOs complained that the legislation lacked updated phrasing to reflect the emergence of tokenized securities. Today, these requirements are easy to reference via these rulings.
Streamlined TokenSoft KYB
Speaking on the protocol's development, TokenSoft CEO, Mason Borda described the software's capabilities in detail. Also, Borda took a moment to discuss the systems in place today, and what problems the new protocol alleviates.
Currently, businesses go through a lengthy procedure that requires around 10 days to complete on average. TokenSoft's KYB drastically reduces this time frame down to hours.
Advance Compliance Automation
In order to accomplish this monumental task, the protocol relies on advanced automation. Automated processes reduce costs, and allow for more accountability. Basically, when you automate a system, you can integrate the auditing requirements directly into the protocol. These types of systems are much more efficient than the current manual processes and can save millions in lost revenue.
Aside from the fact that TokenSoft's KYB is much faster than the current business model, it’s also more secure. The traditional KYB procedures require businesses to send heaps of sensitive data via email. This data usually includes licenses, SSNs, and a host of other personal information.
Consequently, this information is not safe once it is sent digitally, and especially if sent unencrypted. For example, this year alone saw a multitude of major company data breaches. Just last month, the credit card provider, Capital One lost control of over 100 million customer's personal data after a hacker infiltrated the company's system.
Data Theft is On the Rise
Data theft continues to expand to all-time highs. Sadly, the repercussions of a breach can continue for years. One report places the costs of marketing after a major data breach at 64% higher than during normal business operations. Importantly, that's just the added costs incurred trying to protect your company's reputation following the breach, and not the actual damages from the incident.
TokenSoft KYB – A Better Alternative
TokenSoft provides businesses with a more secure alternative to the status quo. Additionally, the new KYB process reduces costs and improves efficiency across the board. It's hard to imagine a scenario in which this product doesn't see great success in the coming months as more firms look towards STOs as a viable crowdfunding option. TokenSoft is positioned perfectly to help these businesses and strengthen its own influence in the market.