zkMe Technology Limited has finalized a $4 million seed funding round led by Multicoin Capital, with participation from OKX Ventures and Robot Ventures.

The funds will support the development of zkMe Network, a decentralized identity verification layer for Web3 applications, expected to launch later this year, according to the company’s release.

Amid increased regulatory scrutiny, particularly from the EU’s upcoming MiCA regulations and the Financial Action Task Force, zkMe aims to provide a compliance solution for Web3 developers.

Privacy and security

The zkMe Network will offer a neutral identity layer that integrates know-your-customer and know-your-transaction protocols while maintaining user privacy through zero-knowledge proofs.

In Web3 and crypto, KYC involves verifying user identities to prevent fraud and comply with regulations, while KYT focuses on monitoring transactions to detect illegal activity. Both are crucial for ensuring security and compliance in the crypto space.

The zkMe Protocol, touted as the world’s first FATF-compliant zero-knowledge KYC protocol, allows for client-side ZKP generation before on-chain verification. This approach reduces latency and enhances data security, giving users full control over their information.

Since its inception in December 2022, zkMe’s technology has been used by over 60 Web3 projects and has facilitated more than 650,000 consumer attestations.

The company’s SDK supports over 20 blockchain integrations, making it a versatile solution for developers. The recent funding will accelerate zkMe’s development roadmap, launch its app chain, and decentralize existing products.