Chainalysis Adds Support For Real-Time Transaction Monitoring For 4 Cryptocurrencies
Chainalysis is a blockchain compliance startup which has recently added real-time transaction monitoring for 4 major cryptocurrencies. The newly added digital assets include Binance Coin (BNB) and three stablecoins – Gemini dollar (GUSD), Tether (USDT) and Circle’s USD Coin (USDC).
The new wave of monitoring tools in the crypto space is being seen as the definite measures against any kind of pump and dump schemes and also to help them monitor fake trading volume on various exchanges. Gemini’s chief compliance officer, Michael Breu said,
“As a New York trust company, we are required to monitor transactions onto and off of our platform, Automated solutions like Chainalysis help us fulfill our regulatory obligations.”
Market monitoring tools have become the necessity for the crypto space especially against the exchanges which uses illegal trading methods to inflate their number to attract users and also charge a significant amount form the developers of the respective token as a compensation charge. The addition of the four new tokens brings the total number of crypto tokens being put on monitoring tools to 10. Chainlysis currently 0provide two main market monitoring tools and solutions in the form of Chainalysis’ anti-money laundering compliance solution, Chainalysis KYT (Know Your Transaction)
The Addition Of New Crypto Tokens Comes In Anticipation Of Regulatory Guidance From FATF
Financial Action Task Force (FATF) is a global money laundering watchdog which is going to provide clarity over the regulation crisis that has been going around the world. The FATF has decided to provide the regulatory guideline help to over 180 countries. Chainalysis who has been working hard to make their market monitoring tools more efficient and scalable has said that their network is ready to more crypto tokens quickly. Chainlsyis’s investigation tool, Chainalysis Reactor also supports the total of 10 cryptocurrencies that are already supported on other tools.
Chainalysis’s co-founder and chief operating officer, Jonathan Levin said,
“Chainalysis is prepared to equip businesses with automated transaction monitoring for currencies beyond bitcoin. We expect that the launch of these multiple currency capabilities will help shape FATF guidance on the sector and help move away from technically infeasible solutions to more pragmatic recommendations.”
The startup was founded back in 2014 and it was able to raise around $36 million in fundings during 2 rounds of the capital generation. Recently the company also published a public comment letter in response to a draft recommendation by the FATF in which they said that it is unrealistic and potentially harmful for the crypto industry to expect exchange platforms to send know-your-customer (KYC) information to recipient platforms with every transaction.
The surge of market monitoring tools gave a divided opinion in the community, while some are in favor since it helps in countering various counterfeit trading tactics used by different exchanges and also help to monitor the flow of token. On the other hand, many who see crypto as a privacy-centered form of finance believes it is unethical to keep track of the transaction data.