Chainalysis, the blockchain analysis company, launched an on-demand compliance and investigations software for ERC-20 tokens. By operationalizing the compliance process and providing full support within weeks of a customer’s request, Chainalysis is helping businesses rapidly meet anti-money laundering/combating the financing of terrorism (AML/CFT) requirements for new ERC-20 tokens. Chainalysis also plans to double the number of cryptocurrencies it supports by the end of the year.
Chainalysis KYT (Know Your Transaction), the cryptocurrency AML compliance solution, is used by over 130 customers in 40 countries to screen transactions in real-time and receive alerts on suspicious activity. Support for several new ERC-20 tokens is available starting this month, including Basic Attention Token, Dai, GoldX, Maker, OmiseGO, and 0x. Over the next three months, the company also plans to roll out support for 23 additional cryptocurrencies including XRP, Dash, ZCash (unshielded), Doge, and Ethereum Classic.
Jurisdictions around the world are issuing regulatory requirements to cryptocurrency businesses to step up compliance procedures. Chainalysis’s technology enables compliance teams to design a risk-based approach in handling issues such as money laundering and exposure to high-risk activities across multiple cryptocurrencies, a critical move for businesses as they expand to new markets and support new cryptocurrencies.
“A robust compliance infrastructure is essential to underpin the growth of this rapidly expanding, global industry,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. “By working closely with our customers and partners, we built a scalable platform that enables us to support more cryptocurrencies at a higher velocity.”
“Chainalysis is the leader in blockchain analysis and compliance software,” said Ethan Beard, SVP of Xpring, Ripple’s developer platform. “We are thrilled to partner with them to further promote the compliant use of XRP by exchanges, wallets, and financial institutions globally.”
Speed and efficiency in implementation of compliance procedures are crucial for businesses looking to quickly meet demand for ERC-20 tokens, which is why Chainalysis’ technology was redesigned to support more blockchains and tokens.
“Developing ERC-20 stablecoins tied to various financial assets is an important part of our strategy to bridge the gap between blockchain and the traditional financial markets,” said Doron Rosenblum, Managing Director of eToroX. “Chainalysis was able to quickly support this vision by developing the compliance technology we needed to safely and responsibly bring this strategy to life.”
Graphing support for these cryptocurrencies is also available in the company’s investigations product, Chainalysis Reactor, and is used by law enforcement to investigate hacks and other illicit activity across multiple cryptocurrencies. By the end of the year, the 48 cryptocurrencies Chainalysis will support will represent 90% of trading volume, and the company will continue to onboard additional cryptocurrencies.