Dapper Labs Expands US Presence with InnReg’s Blockchain Compliance Expertise

Blockchain

Global

Dapper Labs is a blockchain technology company founded in 2018 and headquartered in Vancouver, Canada. It is known for creating some of the most popular blockchain-based applications and games, including CryptoKitties, NBA Top Shot, NFL All Day, and UFC Strike. These products leverage blockchain technology to offer users unique experiences in collecting, trading, and owning digital assets, such as non-fungible tokens (NFTs), representing memorable moments or digital collectibles in various sports and entertainment domains.

The company focuses on building a decentralized digital world where users can own and derive value from their data and digital assets. Dapper Labs developed its own blockchain, Flow, designed to support the large-scale use of NFTs and decentralized applications (dApps). Flow powers not only Dapper Labs’ products but also those of other developers and major brands looking to create blockchain-based experiences.

As of recent reports, Dapper Labs has raised substantial funding, with a valuation reaching $7.5 billion. A range of investors back the company, including Andreessen Horowitz, Union Square Ventures, and Google Ventures, among others.

Objective

Dapper Labs aimed to expand its presence in the US by enhancing its compliance program to support new functionality and mitigate regulatory risks. The goal was to enable the company to continue providing a payment experience for digital products on its blockchain platform while adhering to relevant regulations.

Background

As Dapper Labs planned to expand its digital payment capabilities in the US, they recognized the complexities of US regulatory requirements. They approached InnReg for guidance on building a comprehensive compliance program to support their evolving operations. The company needed a structured approach to address the diverse regulatory landscapes and operational requirements across multiple jurisdictions.

Dapper Labs sought InnReg's expertise to navigate these challenges, develop a compliant operational model, and build the internal capabilities necessary to efficiently manage ongoing regulatory obligations.

Challenges

Dapper Labs encountered several challenges:

Navigating Complex Regulatory Landscapes:
As a non-US company, Dapper Labs needed to follow a variety of federal and state regulations. Each jurisdiction had its own unique requirements, making a deep understanding of regulatory nuances across multiple regions critical.
Managing Costs and Timelines:
With different states imposing varying costs and timelines for compliance, Dapper Labs had to carefully plan and allocate resources. A strategic approach was necessary to help meet regulatory deadlines while staying within budget.

InnReg's Solution

InnReg delivered a comprehensive strategy to help Dapper Labs navigate the regulatory and compliance challenges of expanding its operations in the US market:

Regulatory Compliance and Operational Expertise:
InnReg provided expert regulatory guidance, developing customized compliance frameworks aligned with Dapper Labs' unique business model.
Project Management and Governance:
InnReg managed the entire compliance project, coordinating timelines, resources, and tasks for efficient execution. This structured approach streamlined operations and kept the expansion aligned with the company’s strategic goals.
Building Internal Compliance Capabilities:
InnReg helped Dapper Labs build internal compliance capabilities by implementing structured processes and providing advisory to support a sustainable model for ongoing operations.

Client Results

With InnReg’s support, Dapper Labs successfully navigated the complexities of US regulatory compliance, making substantial progress in strengthening its operational framework.

InnReg’s guidance on key compliance requirements such as information security, reporting, and vendor management helped Dapper Labs mitigate risks as they continued to innovate and expand their operations.