In a post published on the firm’s blog on Aug. 22, Chainalysis announced the launch of alerts for suspicious cryptocurrency transactions in Chainalysis Know Your Transaction (KYT), the company’s real-time anti-money laundering compliance solution. The company also claims that this is the first compliance alerts solution available for 15 crypto assets.

Blockchain analytics firm Chainalysis has launched transaction alerts for suspicious exchanges of a range of cryptocurrencies.

Compliance risk mitigation

The tool is meant to help cryptocurrency exchanges and other financial institutions mitigate their regulatory and reputational risks. Michael Breu, chief compliance officer at major crypto exchange Gemini, is quoted in the announcement:

“As a New York Trust company we are required to monitor transactions on and off our platform. … Tools like KYT alerts, which provide real time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies, help us meet our regulatory obligations.”

According to the article, the company’s KYT service has always included real-time transaction monitoring for large volumes of cryptocurrency activity to identify high-risk behavior. However, now alerts are generated whenever a transfer involves a risky counterparty and crosses a value threshold.

Major assets supported

Such alerts are divided into Severe, High, Medium and Low based on category, service, direct versus indirect exposure, direction of funds and amount. The supported assets include Bitcoin, Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), top stablecoins and ERC-20 tokens such as Tether (USDT), Maker (MKR) and DAI. Chainalysis product VP John Dempsey commented on the development:

“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices. … Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”

As Cointelegraph reported at the beginning of July, Chainalysis claims that 64% of ransomware attack cash-out strategies involve the laundering of funds via cryptocurrency exchanges.

Chainalysis Executive: Transparency and Analytics Build Trust in Crypto

Jesse Spiro, global head of policy at blockchain analytics firm Chainalysis, has said that he believes that transparency builds trust in crypto.

Speaking with Cointelegraph, Spiro addressed widespread concerns that blockchain analytics negatively affect Bitcoin’s (BTC) fungibility and explained why he believes that transparency builds trust in crypto. When he was asked what he believes would be the impact of blacklisting Bitcoin addresses on the coin’s price, he explained:

“Active financial integrity in the ecosystem could also help counter that concern that crypto is a wild west with no way of telling if you’re dealing with someone profiting off of child exploitation. In that sense, transparency and an ability to assess the activity at play, can help build trust in cryptocurrency, which is a significant part of the Chainalysis mission.”

Blacklisting doesn’t affect fungibility

Spiro also explained that he is not of the mind that blocking addresses and marking Bitcoin involved in illegal activity decreases overall value and fungibility. For instance, he explained that in the case of sanctions “BTC would be explicitly untainted by the public removal of sanctions.” Spiro also said:

“Overall, whether frozen or merely identified with problematic activity but still in circulation, the issue is less about fungibility, and more about reasonableness in how far from and what the connection to criminal activity it’s a risk to be transacting (indirect exposure etc), like with fiat (digital or not) today.”

This, according to Spiro, is why blockchain analytics are needed for institutions like cryptocurrency exchanges.

As Cointelegraph reported, Chainalysis recently launched alerts for suspicious transactions across 15 major cryptocurrencies.

ChainDD will Present the Best 2019 US-China Fintech and Blockchain Summit

New York, 16 December 2019 – ChainDD, a leading media company headquartered in Beijing, China with more than 3 million readers globally, is about to host its 2nd-year Fintech and Blockchain Summit under its “CHAINSIGHTS” brand to engage innovators and supporters from fintech and blockchain industries in the US and China. This event will be held on 10/10/2019 from 8:30AM to 9:30PM at the New York Marriott Marquis at New York City.

Last year’s conference (https://chainsights.chaindd.com/2018/) was a resounding success, with close to 300 attendees and 20+ high-profile speakers from the regulatory, legal, media, financial, high-tech, and academic fields to share their insights. The former Chairman of the US Commodity Futures Trading Commission (CFTC), Gary Gensler, also shared his insights and positive evaluation of the blockchain innovation, while also expressing some concerns on the cryptocurrency market.

After one year of technological evolution and industry development, there are a lot of exciting industry stories and updates to be presented during the upcoming CHAINSIGHTS conference.  Roel Campos, former SEC Commissioner and a Partner at Hughes Hubbard & Reed LLP, will be our keynote speaker to talk about the state of blockchain & cryptocurrency regulation. The Australian computer scientist Dr. Craig Wright from nChain will also deliver his Satoshi vision and explain how Bitcoin’s original design will change internet commerce,  and the founding president of Bitcoin Association will share his plan to make BSV a global enterprise blockchain. The Deputy Executive Secretary of the United Nations Capital Development Fund, Xavier Michon, will share his views about how fintech and impact investing will drive financial inclusion and create more social value. We also have many speakers and investors from major financial institutions, tech companies, and the blockchain industry in the US and China to share their perspectives on the future financial landscape and its technology innovation and adoption potential, as well as global investment opportunities. Jay Hao, CEO of OKEx, and Leo Lam, senior partner at Tesra Supernet, will also talk about their vision and company’s roadmap to foster the development of blockchain and digital assets.

Please go to https://chainsights.chaindd.com for further details about the event and register to join the conference at https://www.eventbrite.com/e/chainsights-2019.

About ChainDD

ChainDD Inc., as a global media and fintech company, provides direct access to blockchain innovation and digital assets through accurate and timely delivery of blockchain-oriented business and financial insights and services to individuals and institutions around the world.

In IIn 2018, we spun off from TMTPost Group, China’s most influential tech media company focusing on worldwide technology news and data services with more than 150 million readers and 1.5 billion page-views. ChainDD is ranked as the No. 1 blockchain-related news app in China, with more than 3 million readers and delivers a daily average of 100 articles and flash news updates in Chinese and English 24/7. Currently, we have offices in Beijing and New York City.

Leave a Reply

Your email address will not be published.