Chainalysis partners with Algorand for blockchain
Chainalysis, the blockchain analysis company has partnered with the Algorand Foundation, the stewards of Algorand, the world’s first, permissionless, Proof of Stake blockchain, that offers an open, global platform for building products and services in a Borderless Economy. Once the integration is complete, the Algorand Foundation will use Chainalysis KYT (Know Your Transaction) for transaction monitoring and compliance processes and Chainalysis Reactor for enhanced due diligence and investigations for the ALGO, its native token.
“Algorand is committed to providing an inclusive, transparent, and secure system for its global users,” said Fangfang Chen, Chief Operating Officer, Algorand Foundation. “We needed a compliance partner that could not only help us adhere to regulations in Singapore where we are based but also global regulatory best practices. This will enable us to build the best transaction monitoring solution for the Algo token so that we can realize our mission of providing the world’s first open, permissionless, pure proof-of-stake blockchain protocol securely and scalably.”
“By putting proper AML transaction monitoring in place, Algorand is demonstrating its commitment to transparency, safety, and compliance,” said Jason Bonds, Chief Revenue Officer, Chainalysis. “This is the commitment required to build trust and encourage both decentralized financial businesses and traditional finance and to embrace cryptocurrency in Singapore and across the world.”
By leveraging Chainalysis KYT, cryptocurrency organisations like the Algorand Foundation can monitor large volumes of cryptocurrency activity and identify high-risk transactions on a continuous basis. Real-time alerts on the highest-risk activity allow compliance teams to focus on the most urgent activity and fulfill their regulatory obligations to report suspicious activity. Chainalysis Reactor assists cryptocurrency businesses to further investigate suspicious transactions and provide more detailed reporting on criminal activity such as fraud, extortion, and money laundering on the blockchain.
Through integration with Chainalysis KYT via an API, token issuers like the Algorand Foundation can monitor large volumes of activity and identify high-risk transactions on an ongoing basis. The user interface also allows them to quickly understand the risk profile of each token holder with up-to-date data, filtering them by the level of risk exposure to identify those that require the most immediate attention.