Chainalysis KYT is currently live on 110 cryptocurrency businesses and financial institutions in 35 countries. Leading blockchain analysis company, Chainalysis, has rolled out its cryptocurrency compliance solution for LINE’s digital asset exchange, Bitbox.
LINE regards compliance as a priority in its venture within the cryptocurrency space in order to smoothly operate its global regulated exchange. The ecosystem increasingly antecipates global regulatory guidance on the matter, with the the Financial Action Task Force (FATF), the inter-governmental body that sets global standards relating to anti-money laundering and combating the financing of terrorism (AML/CFT), set to issue guidance this month. More than 180 countries, including Japan and South Korea, fall under its oversight. In the United States, any foreign organizations conducting “substantive” business with U.S. persons must comply with U.S. regulations.
Jonathan Levin, Co-Founder and COO, Chainalysis, commented:
“We have heard from regulators that blockchain analysis is an important part of an effective anti-money laundering solution, and will be a significant factor in cryptocurrency businesses’ ability to comply with global regulations. Exchanges like BITBOX that implement these best practices ahead of regulatory evaluations will show a dedication to compliance.”
The Bitbox exchange will deploy Chainalysis’ KYT (Know Your Transaction), which applies global AML standards to each transaction across all users within an organization’s user base. In addition to monitoring large volumes of cryptocurrency activity and identifying high risk transactions on a continuous basis, the solution allows cryptocurrency exchanges to leverage the user interface to quickly understand the risk profile of each user with the latest data and filter them by level of risk exposure.
Youngsu Ko, CEO of LINE Tech Plus, LINE, said:
“Chainalysis’ compliance technology excels at meeting anti-money laundering requirements while also ensuring future best practices. By adopting Chainalysis KYT, BITBOX will provide safe and secure trading experiences while demonstrating our commitment to compliance.”
Chainalysis, fresh off last year’s $16 million initial funding, secured a Series B led by Accel with existing investors subscribing. Strategic investors included Sozo and MUFG. The newly raised $36 million will go toward opening a London office, expanding into Asia-Pacific markets and other corporate purposes.
Chainalysis has more than doubled its client base in the APAC region over the last year and a half. Contracted revenue from clients there increased by more than 20x.