Cryptocurrency exchange Bitfinex has integrated a compliance tool from blockchain analysis firm Chainalysis. Chainalysis’s “Know Your Transaction (KYT)” compliance software will help Bitfinex detect suspicious transactions on a real-time basis.

Exchanges Binance and Bittrex have also recently integrated Chainalysis compliance software ‘KYT’.

Chainalysis compliance solution is “aligned with what we were seeking to keep bad actors off of our platform while protecting the privacy of our users,” said Peter Warrack, Chief Compliance Officer, Bitfinex. He added, the solution does not share users identifying information and is kept strictly in-house.

Need for compliance solution:

Recently the UN released a report on Drugs and Crime in which it mentions that 2% to 5% of the global GDP is laundered each year, much of it in cash. But over the last few years, cryptocurrencies have become a popular option too for money-laundering.

Many governments have started to investigate crypto exchanges. In some jurisdictions, exchanges are to provide trading data of each user to the authorities.

The regulatory requirements will continue to shape the cryptocurrency ecosystem. Companies need to put stringent compliance solutions in place or risk shutting down. Chainalysis solutions help to detect and prevent money laundering and other illicit activity across multiple cryptocurrencies.

Over the past year, Chainalysis expanded its coverage beyond Bitcoin. Now it covers 41 additional cryptocurrencies including Ether, Bitcoin Cash, Litecoin, and ERC-20 tokens such as Tether, Maker, and Dai.

Like the post? Share it with your friends.







