Chainalysis KYT (Know Your Transaction)
In a world constantly evolving with the latest technologies, regulation and compliance are typically slower to roll out to prevent any misfortunes or events from occurring. This can cause a massive problem later on.
Cryptocurrency and blockchain technology is one of the latest innovations to strike the financial industry, except it’s very limited on regulation which can lead to a lot more scams or money laundering techniques.
Chainalysis KYT (Know Your Transaction) brings cryptocurrency compliance through leading blockchain intelligence with modern upfront user interfaces to reduce the manual labor needed to manage cryptocurrency businesses. They ease the process of maintaining a financial ecosystem of transactions for many corporations so they can best suit their customer’s security and financial needs.
Building The Foundation for Trust
Data, software, compliance, and research lay the groundwork for Chainalysis clients such as government agencies, exchanges, corporations, and more in over 60 countries. This has set them up to be diversified in an industry that has been fast-growing, creating competition, and increasing compliance and regulation.
Want to learn more about Value investing and add another skillset to your trading arsenal? Check out the Book “The Intelligent Investor”. You can get your copy here.
Risk management platforms are necessary when being involved in cryptocurrency solutions thus, the risk can become reduced or eliminated. This is why they continuously strive to provide powerful investigations and compliance to all clients.
Their top customers include Gemini, Bitpay, Bitstamp, Square, and some others which are provided with the tools needed to adhere to the compliance and regulatory rules in specific countries. In total, over 375 organizations rely on Chainalysis to enhance the cryptocurrency experience for their customers. This client base is likely to increase over time as more businesses become involved in cryptocurrency and blockchain services over the long term.
Managing Risky Activity Through Blockchains
Through Chainalysis KYT, they can detect patterns of suspicious or risky activity by monitoring over 90% of all cryptocurrency activity on their platform. Real-time KYT alerts can be created to prevent withdrawals from specific addresses, prevent scams, and stop deposits from hackers.
These services by Chainalysis work together to control hundreds of millions of cryptocurrency addresses that have transferred over $5 trillion worth of value. They support over 100 digital assets such as Bitcoin, Ethereum, Litecoin, and even stablecoins. New cryptocurrencies are added to the service platform once they meet the high-quality standard for Chainalysis.
A large portion of cryptocurrency transactions occurs on regulated services such as exchanges and payment processors, which Chainalysis will verify and provide the most all-inclusive profile to services matched with high compliance standards, vigorous KYC policies, and many supported currencies.
It’s become obvious that cryptocurrencies will continue to become adopted around the world over time and more corporations will be incorporating them into their business models. This has opened a sizable, more fair, and heavily integrated economy for many people worldwide.
The problem which Chainalysis is solving is trustability. Trustability is a massive problem to have, so the fact that they are tackling this head-on surprises many. Although the number is decreasing, there are still individuals, corporations, and some governments that do not yet trust these new digital currencies, hence why Chainalysis is integrating cryptocurrencies into trustworthy platforms to prove and showcase that we can still have a fair, regulated, established, and secure platform without the need for worry.
They have truly given confidence to their bank, business, and government clients that digital economies are the solution with compliance. We can all benefit from a more fair system, which is the exact benefit cryptocurrencies bring the average individual.
What we are seeing now is only the early stages of what the future economies may look like, how they’ll run, and integrate with each other. This is comparable to the early stages of the internet. There’s a high chance Chainalysis will be there alongside it all.
Enjoyed reading this article? Click HERE for more just like it. Also don’t forget to subscribe to our Weekly Newsletter and never miss a publication!