zkMe Technology Limited, a leading provider of zero-knowledge (ZK) identity verification solutions, announced it has secured $4 million in a seed round led by Multicoin Capital, with participation from OKX Ventures and Robot Ventures. The funds will be used to develop the zkMe Network, a neutral zero-knowledge identity layer designed for Web3 developers needing identity verification and compliance solutions. The network is scheduled to launch by the end of Q4.
The announcement comes at a pivotal time, as recent enforcement actions against decentralized financial service providers underscore the need for crypto projects to prepare for significant regulatory changes. The EU's MiCA regulation, set to take effect in 2025, will mandate Know Your Customer (KYC) procedures for all crypto transactions. Furthermore, the Financial Action Task Force (FATF) is intensifying its focus on anti-money laundering measures, making compliance a pressing issue for the industry.
As the only decentralized KYC provider ready for FATF standards, zkMe offers Web3 teams a comprehensive suite of credential verification solutions. These include robust anti-bot and anti-sybil measures, as well as full-fledged KYC and Know Your Transaction (KYT) capabilities. Available via SDK or API, zkMe's solutions streamline compliance, enhance data security, and reduce regulatory complexities. This allows developers to ensure their projects not only meet stringent regulatory demands but also adhere to the privacy-first ethos of Web3.
"The regulatory landscape is shifting rapidly, with enforcement actions on the rise and MiCA regulations looming in 2025. Crypto companies need to act decisively now. 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," stated Alexander Scheer, CEO and Founder of zkMe.
Powered by the zkMe Protocol, the world's first FATF-compliant zero-knowledge KYC (zkKYC) protocol, and the zkMe Network, a proprietary appchain, zkMe shifts zero-knowledge proof (ZKP) generation from server-side to client-side before on-chain verification. This eliminates latency issues and data breach risks associated with traditional server-side models, ensuring users maintain full control over their data. The zkMe chain then stores proofs in a neutral, decentralized layer, creating a trustless, self-sovereign, privacy-preserving bridge between credentials and any blockchain.
"zkMe's client-side approach to identity verification is the first-order correct way to do identity verification and compliance in the MiCA age," said Kyle Samani, Managing Partner at Multicoin Capital. "We are excited to partner with zkMe as they continue to build a decentralized and trustless identity infrastructure for the future of the internet."
Since its inception in December 2022, zkMe's technology has been adopted by over 60 Web3 projects, facilitating over 650,000 consumer attestations. Its diverse clientele includes platforms like Alchemy Pay and Kyberswap, as well as prominent launchpads and Real World Asset (RWA) projects. The zkMe SDK, built on Cosmos and EVM compatible, offers broad chain support with over 20 integrations, making it the most versatile solution in the market. This SDK enables Web3 developers to seamlessly integrate self-sovereign identity and verifiable credentials into their applications, ensuring security and privacy while providing tools for creating, managing, and verifying credentials.
"zkMe's reusable KYC solution is a game-changer. By empowering users to control their own digital identity and seamlessly reuse their verified credentials, zkMe is not only enhancing privacy and security but also streamlining the onboarding experience across the Web3 ecosystem. This is a critical step towards a more efficient and user-friendly decentralized future," said Jeff Ren, Partner of OKX Ventures.
The latest funding round aims to accelerate zkMe's roadmap, including the decentralization of current products and the completion and launch of their appchain.
