Huobi Global Launches Blockchain Analytics Tool ‘Star Atlas’ to Curb ‘Bad Actors'

In a bid to win back trust, Huobi has announced the launch of its brand new analytics tool dubbed 'Star Atlas' - But the community wonders how will the tool be used.

  • Huobi announced the launch of a new intelligence analytics tool that would help flag illegal transactions.
  • They have now joined the ranks of other firms like Cyphertrace and Chainalysis who have also developed such tools.
  • US agencies forked out over $10 million for access to such tools.

Reports have surfaced that Huobi has unveiled a new Blockchain analytics tool. Following an announcement on April 13th, Huobi's new tool – Star Atlas – would aid in the process of cracking down on bad actors that have tarnished their name.

Notably, in the recently released crypto money laundering report by Chainalysis, they seem to indicate that Huobi was frequented by bad actors. These same entities accounted for nearly a quarter of the illegal $2.8 billion in Bitcoin transactions flowing through the exchange. Only Binance was ranked higher in the report.

According to the VP of Global Business, Ciara Sun highlighted the company's intention of leveraging the analytics tool to monitor cryptocurrency transactions.

This would help the company flag crimes like fraud and money laundering, as well as blocking accounts linked to the activity, thereby restricting access to funds in the account. This will be followed up by a compliance officer who will be assigned the flagged transaction.

“It's estimated that only a small percentage of cryptocurrency transactions are illicit, but any incident – regardless of size – is a stain on the entire industry”

They were, however, not keen on explaining the exact parameters of which they deemed a transaction as illicit. Raising concerns over how such a system could avoid being subject to abuse.

Re-entry to US markets?

The strategic launch has come just days after Huobi announced their planned reentry to the US markets following the shutdown of Huobi US (HBUS) just five months ago citing regulatory crunches.

They're reportedly in talks to acquire a minority stake of an undisclosed US-based partner to help mitigate their local regulations woes.

Huobi has been the latest arrival to the US-sphere that is basically leveraged by various financial watchdogs. Players currently in the sphere include Cyphertrace and Chainalysis.

It was reported back in September 2019, US agencies: FBI and IRS had forked out more than $10 million for access to such tools.

The exchange has highlighted that it's working with regulators across borders to get the necessary certifications to ensure it's in full regulatory compliance with AML, CTF requirements and local Know Your Customer (KYC) protocols.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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