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Bitfinex taps Chainalysis for anti-money laundering compliance solution



Source: Pixabay

Chainalysis, a blockchain analysis firm, is in the news again after it completed the global roll-out of its anti-money laundering compliance solution with Bitfinex. According to a press release shared with AMBCrypto, the solution in question is yet another in the platform’s efforts to detect and prevent money laundering and illicit activities across multiple cryptocurrencies.

The development comes at a time when establishing proper compliance procedures is more critical than ever as jurisdictions around the world continue to closely scrutinize the cryptocurrency industry.

Speaking of the development, Jason Bonds, Chief Revenue Officer at Chainalysis, said,

“Bitfinex is known as a destination for cryptocurrency traders seeking liquidity across various cryptocurrencies, and that volume requires an automated blockchain analysis solution in order to comply with regulations across the world.”

Additionally, Bonds also revealed his excitement at working with Bitfinex towards this endeavor.

By leveraging Chainalysis’ KYT (Know Your Transaction), cryptocurrency businesses such as Bitfinex can monitor large volumes of cryptocurrency activities and identify high-risk transactions on a continuous basis.

According to Peter Warrack, Chief Compliance Officer at Bitfinex,

“Chainalysis is a top-of-the-line, comprehensive and privacy-safe compliance solution aligned with what we were seeking to keep bad actors off of our platform, while protecting the privacy of our users.”

Warrack also claimed that the solution in question does not share information which can identify users on the platform, adding that the same is kept “strictly in-house.” The Bitfinex CCO also expressed his excitement at working with Chainalysis “to build out a safe and robust platform.”

Having expanded its coverage beyond Bitcoin earlier this year, Chainalysis now covers 41 additional cryptocurrencies including Ether, Bitcoin Cash, Litecoin, and other top stablecoins. The analytics platform was in the news previously after noted crypto-exchange, Bittrex, updated its security features by using Chainalysis’s KYT tool. In fact, the platform had also launched real-time alerts for suspicious crypto-transactions a few months ago.

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A Psychology and Journalism graduate, Rakshitha focuses on UK and Indian markets. As a crypto-journalist, her interests lie in blockchain technology adoption across emerging economies.