Building Regulatory Confidence: Establishing Compliance Framework and Cryptoasset Registration for Thallo
This case study explores how Zeyro successfully assisted Thallo, a tokenised carbon marketplace, in navigating regulatory challenges and establishing a robust compliance framework. Thallo aimed to ensure regulatory compliance and obtain necessary authorisations while developing their innovative platform.
Client Background:
Founded in 2021, Thallo is a first-of-its-kind tokenised carbon marketplace, designed to allow users to create, explore, and trade tokenised forms of verified carbon assets on the Thallo platform. Thallo's platform has quickly amassed an impressive community, recognition within the industry, and has so far managed to bridge 24,555 tonnes of carbon.
Today, the platform is in its early stages of development, and the business is building a robust compliance framework to help it ensure that it meets its regulatory obligations whilst putting customers at the heart of its operations.
Challenge/Opportunity:
Thallo faced the challenge of successfully registering as a cryptoasset business with the Financial Conduct Authority (FCA) in the UK. This registration was critical for Thallo's platform, as the FCA's stringent evaluation process and high rejection rates (85%) posed significant risks. Thallo needed to address evolving regulatory obligations and complexities associated with being a registered cryptoasset business.
Zeyro's Approach:
Zeyro, renowned experts in blockchain, web 3.0 technologies, and regulatory obligations, partnered with Thallo to address their challenges. Leveraging their deep understanding of the regulatory landscape and the FCA's assessment process, Zeyro devised a tailored approach to meet Thallo's specific needs.
Solutions Implemented:
Zeyro employed a comprehensive risk framework, including a risk taxonomy, appetite statement, and risk register, to ensure Thallo's compliance. They developed bespoke anti-money laundering and counter-terrorist financing policies and procedures and crafted a regulatory business plan. Zeyro's team completed the intricate cryptoasset registration forms, ensuring adherence to regulatory requirements.
Results and Impact:
Through Zeyro's expertise, Thallo achieved a complete compliance framework that empowered them to remain regulatory compliant. Zeyro's solutions provided Thallo with the confidence to progress along their development roadmap, plan for launch, and fulfill their duty of care to consumers. The submission of the cryptoasset registration application to the FCA marked a significant milestone for Thallo.
All in all...
Zeyro's expertise in blockchain, web 3.0 technologies, and regulatory obligations enabled Thallo to successfully establish a compliance framework and navigate the complexities of cryptoasset registration. By addressing regulatory challenges and ensuring compliance, Zeyro facilitated Thallo's path to launch with confidence. Zeyro continues to be a trusted partner in the compliance and risk management space, helping clients achieve regulatory confidence and meet their business objectives.