zkMe Secures $4M From Multicoin Capital To Build FATF- and MiCA-Compliant Identity Solution For Web3 Applications

zkMe Technology Limited, the leading provider of zero-knowledge (ZK) identity verification solutions, today announced a $4M seed round led by Multicoin Capital

Web3 identity verification provider zkMe has closed a $4 million seed funding round led by Multicoin Capital to build a decentralized identity layer for Web3 applications that complies with the Financial Action Task Force (FATF) Travel Rule and the Markets in Crypto Assets (MiCA) regulation.

Other participants in the round include OKX Ventures and Robot Ventures, the venture capital arm of Web3 infrastructure firm Celer Network.

The investment will be used to develop the zkMe Network, a neutral zero-knowledge identity layer for Web3 developers who require identity verification and compliance, the company said in a statement. The network is expected to launch by the end of Q4.

Founded in 2022, zkMe provides decentralized know-your-customer (dKYC) solutions for Web3 applications to help them meet upcoming regulatory requirements. Its products include reusable decentralized KYC attestations, attestations for decentralized autonomous organizations, and anti-bot and anti-sybil credentials.

The company claims to be the only decentralized KYC provider ready for FATF standards, which are set to impact crypto projects significantly.

The funding news comes amid a wave of regulatory actions against decentralized financial service providers, putting pressure on crypto projects to ensure they are prepared for the impending changes.

The EU’s MiCA regulation, set to take effect in 2025, will mandate KYC procedures for all crypto transactions, while the FATF is intensifying its focus on anti-money laundering measures.

“Embracing compliant, decentralized KYC solutions like zkMe isn’t just about avoiding penalties, it’s about securing the future of your business and upholding the fundamental right to privacy for your users,” said Alexander Scheer, CEO and founder of zkMe.

zkMe’s identity verification solutions are powered by the zkMe Protocol, the world’s first FATF-compliant, zero-knowledge know-your-customer (zkKYC) protocol, and the zkMe Network, a proprietary appchain.

The zkMe Protocol shifts zero-knowledge proof (ZKP) generation from the server-side to the client-side before on-chain verification, eliminating the latency issues and data breach risks associated with traditional server-side models and ensuring users maintain full control over their data, according to the company.

The zkMe chain then serves to store proofs in a neutral, decentralized layer, creating a trustless, self-sovereign, privacy-preserving bridge between credentials and any blockchain.

“We are excited to partner with zkMe as they continue to build a decentralized and trustless identity infrastructure for the future of the internet,” said Kyle Samani, managing partner at Multicoin Capital.

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