Catch suspicious cryptocurrency transaction with alerts from Chainalysis. The company’s Know Your Transaction (KYT) provides real-time anti-money laundering (AML) services.
Chainalysis today announced the launch of suspicious cryptocurrency transaction alerts in Chainalysis Know Your Transaction (KYT), the real-time anti-money laundering (AML) compliance solution for monitoring cryptocurrency transactions. It is the first compliance alerts solution available across 15 cryptocurrencies.
The tool is meant to help cryptocurrency exchanges and other financial institutions mitigate their regulatory and reputational risks. In a post published on the firm’s blog on Aug. 22, the company said its Know Your Transaction (KYT) tool works in real time to provide compliance with Anti-Money Laundering measures — and claimed this is the first solution to offer compatibility with such a broad range of crypto assets.
Chainalysis KYT alerts are 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.
“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices,” said John Dempsey, VP Product, Chainalysis. “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.”
Chainalysis KYT has always provided real-time transaction monitoring for large volumes of cryptocurrency activity to identify high risk behavior, and now alerts are generated whenever a transfer involves a risky counterparty and crosses a value threshold. Alert levels include Severe, High, Medium, and Low, and are based on factors such as category, service, direct versus indirect exposure, direction of funds, and amount. Alerts are available for all 15 cryptocurrencies supported by Chainalysis, including Bitcoin, Ether, Bitcoin Cash, Litecoin, and top stablecoins and ERC-20 tokens such as Tether, Maker, and Dai, with additional cryptocurrencies coming soon.
With alerts functionality built directly into the user interface and API, cryptocurrency businesses and financial institutions can keep track of, investigate, or take action on risky transfers. Additionally, customers can customize risk parameters based on their own business policies to help allocate resources accordingly.
“As a New York Trust company we are required to monitor transactions on and off our platform,” said Michael Breu, Gemini’s Chief Compliance Officer. “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.”
Alerts are categorized as low, medium, high or severe based on category, service, direct versus indirect exposure, direction of funds, and amount. The supported assets include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), top stablecoins and ERC-20 tokens such as Tether (USDT), Maker (MKR) and DAI.
As Cointelegraph reported at the beginning of July, Chainalysis claims that 64% of ransomware attack cash-out strategies involve the laundering of funds via cryptocurrency exchanges. While the company has provided these services earlier, it is expanding it repertoire to include 15 cryptocurrencies.