Digital asset trading platform Bittrex has signed up to leverage Chainalysis and its Know Your Transaction (KYT) platform. As regulators have focused more energy and attention on the crypto market, exchanges have had to up their game to make certain they operate within the parameters of existing rules.
Chainalysis provides a service which claims to monitor large volumes of cryptocurrency activity and identify high-risk transactions on a continuous basis – effectively in real-time.
“As we focus on building out our products to accommodate more cryptocurrencies beyond Bitcoin, working with cryptocurrency exchanges that focus on offering a broad array of coins is mutually beneficial,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. “Bittrex is dedicated to offering a breadth of cryptocurrencies to their customers and enforcing comprehensive compliance policies.”
Chainalysis is said to enable Bittrex to quickly understand a users risk profile immediately.
Bittrex’s compliance team also participated in a training session hosted by Chainalysis, which provided techniques in risk management workflow.
Bill Shihara, CEO of Bittrex, said that as they grow they must have reliable transaction monitoring in place.
“[It] is crucial in demonstrating our commitment to compliance,” said Shihara. “Chainalysis KYT is an important tool in having an effective anti-money laundering program by helping us prevent, detect, and address unlawful behavior.”
The days of rampant money-laundering and illicit activity is dwindling away. The recent FATF guidelines on crypto were, effectively, the nail in the coffin to shut the door on blatant acts of fraud. While problems still exist, exchanges that want to remain in business now understand it is necessary to comply with the rules. Or else.
Earlier this year, Chainalysis expanded Chainalysis KYT, its anti-money laundering (AML) compliance solution, to cover the most popular cryptocurrencies, including Ether, Bitcoin Cash, Litecoin, top stablecoins and ERC-20 tokens such as Tether, Maker, and Dai, with additional cryptocurrencies coming soon.
Chainalysis reports that it currently covers 25 cryptocurrencies, representing 85% of the top 100 by trading volume, and will continue to onboard additional cryptocurrencies in the coming months.