Crypto Payroll Firm Toku Raises $20 Million Amid Industry-Wide Shift Towards Compliance
Toku, a startup specializing in token-based payroll and tax compliance, has successfully raised $20 million in funding. The company's unique approach is designed to assist crypto businesses in maintaining regulatory compliance amidst increased scrutiny from regulators. With its innovative solutions, Toku aims to provide a much-needed helping hand to the crypto industry during these uncertain times.
The initial round was led by Blockchain Capital, with participation from GMJP, OrangeDAO, Reverie, Quantstamp, Next Web Capital, angel investors like Cameron and Tyler Winklevoss, law firm Orrick, the founders of Protocol Labs, and infrastructure firm Alchemy, according to the press release.
The investment, it said, will accelerate Toku’s global expansion.
Japan-based former equities trader Ken O'Friel cofounded Toku with veteran banker Dominika Stobiecka in order to help crypto companies comply with a slew of international tax regulations and obligations regarding crypto-based salaries.
O'Friel noted that, back during the early-2022 bull market, most crypto companies did not have compliance at the top of their priority lists, Fortune reported. But that was about to change fast following the FTX collapse, fixing the global regulatory eye firmly on the crypto sector.
According to Fortune, O'Friel has pointed out that during the early stages of the 2022 bull market, compliance was not a top priority for many crypto companies. However, the recent collapse of FTX and the increased regulatory scrutiny that followed have brought compliance to the forefront of the industry's concerns. As a result, many crypto companies are now making compliance a high priority.
O'Friel was quoted as saying,
"We realized the hardest part isn’t the
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