Financial services platform CoinList which mainly insists on compliance with regulation has raised $9.2 million during its ICO according to reports published today. This startup is a subsidiary of AngelList which is a website that connects startups to job seekers and investors.
According to the press release, the total $9.2 million raised by CoinList includes previous funds which had been raised from firm compliance and Protocol Labs which is a research firm. More to that were also funds obtained from Polychain Capital, FBG Capital, Digital Currency Group,Blockchain Capital, Electric, Coinfund and Libertus Capital.
According to information from CoinList’s website they have raised $435 million from other projects on their platform in the past 12 months. A large amount of this money came from an Initial Coin Offering by FileCoin which raised $205 million.
CoinList offers many services which include a compliance service called COmplyAPI which mainly promotes taking care of compliance as you focus on token sale. The work of COmplyAPI is to: “Conduct AML and KYC checks on different investors while still ensuring that only accredited investors participate in the company’s token sale as per the law of US securities.
The co-founder of CoinList who is also the acting CEO Andy Bromberg stated in the press release that the success of CoinList shoes the growing need for Blockchain companies to have superior token sale compliance and execution. According to Andy:
“Now that companies are raising money mainly through ICOs they need a partner who can help them with compliance and regulation. CoinList provides all that and added integrity to all startups that have already proved themselves and comfort to accredited investors who want to commit to Blockchain technology.”
During the launch of an ICO in the United States a company is required to comply by either registering with the US Securities and Exchange Commission as an accredited investor exemption or register the ICO as a security offering. There are many ICOs which have been shut down by SEC for selling unregistered securities the most recent one being Massachusetts.