What would Satoshi have to say about all this? The hottest area of crypto right now is compliance—a field dedicated to helping companies adhere meticulously to thousands of rules and regulations cooked up by bureaucrats and bank regulators. It’s a safe bet that Bitcoin’s creator—who viewed his invention as a means to escape the power of governments altogether—would not be impressed. But here we are.
This week, Fortune reported on two compliance-focused crypto startups: Violet, which raised $15 million to expand its offerings that are based around its commitment to enforce know-your-customer laws, and Toku, which has combed through laws in over 100 countries to help companies track the tax obligations of staff compensated in crypto. These are just the latest entrants to a booming cottage industry of lawyers, accountants, and consultants who are getting fat by advising crypto firms how not to step on regulatory mines.
