Suspicious cryptocurrency transaction alerts can help cryptocurrency businesses and financial institutions keeping track of, investigate, or take action on risky transfers. Risk parameters are customizable based on their own policies.
Blockchain analysis company Chainanalysis has launched suspicious cryptocurrency transaction alerts through its real-time anti-money laundering (AML) compliance solution for monitoring cryptocurrency transactions, Chainalysis’ Know Your Transaction (KYT).
Chainalysis’ KYT is the first compliance alerts solution available across 15 cryptocurrencies and is designed to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources.
John Dempsey, VP Product at Chainalysis, commented: “As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices. Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”
Know Your Transaction (KYT) has been providing real-time transaction monitoring for large volumes of cryptocurrency activity to identify high risk behavior since being founded in 2014. Suspicious cryptocurrency transaction alerts are signaled whenever a transfer involves a risky counterparty and crosses a value threshold.
Alert levels are based on factors such as category, service, direct versus indirect exposure, direction of funds, and amount. Chainalysis supports 15 cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash, Litecoin, and top stablecoins and ERC-20 tokens such as Tether, Maker, and Dai. The firm will add other digital currencies soon.
Michael Breu, Chief Compliance Officer at Gemini, said: “As a New York Trust company we are required to monitor transactions on and off our platform. Tools like KYT alerts, which provide real time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies, help us meet our regulatory obligations.”
Chainalysis KYT is currently live on more than 110 cryptocurrency businesses and financial institutions in 35 countries. The company has rolled out its cryptocurrency compliance solution for LINE’s digital asset exchange, Bitbox, in June 2019.
KYT 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.
Since 2014, Chainalysis has secured over $56 million from leading investors including Accel, Sozo and MUFG.