Chainalysis Introduces Live Suspicious Transaction Detector for 15 Major Cryptos
Chainalysis, a blockchain analytics firm, has introduced transaction alert facility for dubious crypto trades carried out in exchanges. Chainalysis issued a statement revealing the launch of alert facility for dubious cryptocurrency trades, named Chainalysis Know Your Transaction (KYT).
The blockchain firm has claimed that its real-time anti-money laundering compliance solution is the first of its kind alerts solution offered for 15 cryptocurrencies.
The product offering is aimed to assist cryptocurrency exchanges and other financial firms negate their reputational and regulatory threats. Michael Breu, chief compliance officer at key crypto exchange Gemini, elaborated on the facility:
“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.”
The press release states that KYT service involves real-time high volume crypto trade tracking in order to discover suspicious behavior. However, currently alerts are created whenever a trade involves a pre-determined risky counterparty and breaches a particular threshold value.
The alerts are issued as “Severe, High, Medium and Low” under the categories service, direct versus indirect exposure, direction of funds and amount. The assets tracked by the firm are Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), top stablecoins and ERC-20 tokens such as maker (MKR), Tether (USDT) and DAI. Chainalysis product VP John Dempsey had the following to say about 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.”
Last month, Chainalysis brought to light of the fact that 64% of malware attack cash-out techniques involve washing funds through cryptocurrency exchanges.