Japanese Investors MUFG and Sozo Ventures Help Chainalysis Raise $6 Million for Compliance Tech
Chainalysis is a well known blockchain intelligence firm, located in the United States. The company recently held a Series B round, during which time it received $30 million right at the start.
However, in a blog post dated April 16th, the company has managed to add another $6 million in funding, thanks to contribution from two major Japanese Investors.
Recent commented from Chainalysis imply that the company is looking to break into the Japanese market at some point in the futures. Compliance technology is still being integrated with financial institutions, including banks, at the moment.
The two major investors listed were Mitsubishi UFJ Financial Group (MUFG) and Sozo Ventures, which is a venture capital firm. MUFG has maintained a consistent presence and level of activity in the blockchain industry.
We are thrilled to partner with MUFG Innovation Partners & Sozo Ventures as we further expand in APAC and build trust among financial institutions, cryptocurrency businesses, and governments https://t.co/uS3loQvpaJ
— Chainalysis (@chainalysis) April 16, 2019
During the blog post, CEO and President of MUFG Innovation Partners – Nobutake Suzuki – commented that the compliance tech that Chainalysis is bringing to the industry is “important” to the controls that banks need in anti-money laundering efforts to move ahead in the progress of “next generation compliance frameworks.”
Suzuki added that the annoucement this week is meant to demonstrate MUFG’s commitment to pushing the crypto industry forward in both Asia Pacific and Japan.
Over the last year, the contracted income of Chainalysis has already increased by 16 times over, which clearly interested the Japanese regulators.
In Japan, the regulators want to strengthen the local crypto industry as the regulators start to allow other exchanges to come in. Michael Gronager, the CEO of Chainalysis, said that the company should be opening an office in the country with “the next year or so,” but added that the timeline has not been set in stone.
Earlier in April, Chainalysis had voiced concerns about the regulatory demands that the Financial Action Task Force is trying to implement. The FATF is asking participants in the market to maintain an elaborate amount of information on the individuals that perform transactions on these exchanges.
By requiring more identifying information, these regulations could ultimately take away a good portion of the privacy that users have come to desire.