New York-based startup and provider of cryptocurrency compliance and investigation solutions, Chainalysis, has expanded its real-time transaction monitoring service to cover 10 cryptocurrencies. A company statement claims that this comes in anticipation of global regulatory guidance that will require automated transaction monitoring for the cryptocurrencies that exchanges and financial institutions support.
The ten cryptocurrencies are Bitcoin, Ether, Bitcoin Cash, Litecoin, Binance Coin, Tether, USD Coin, Gemini Dollar, Paxos Standard, and True USD, with more being supported later in the year.
As part of an initiative to help reduce global anti-money laundering activities, Chainalysis helps law enforcement, regulators and businesses such as banks track the flow of cryptocurrency. The company’s KYT (Know Your Transaction) anti-money laundering compliance solution, is used by more than 110 cryptocurrency businesses and financial institutions across the world.
Plans To Support Compliance On every Cryptocurrency Available
“The request we get from our compliance customers is to provide service for as many coins as possible,” said Chainalysis Product VP John Dempsey. “What customers expect is that we will be able to support compliance and investigations on every currency out there. This launch is not about ten currencies, but a launch about our ability to have support many many more over time”.
Last year, The Financial Action Task Force (FATF) announced that all 180 of its member states would have to start regulating their virtual asset markets and signaled that tighter guidance would come in June 2019. If any state is presumed to be deficient regarding AML/CFT, the FATF will add the country to its list of non-cooperative countries, which will have a massive effect on potential financial borrowing from institutions like the IMF and World Bank and a downgrade in country ratings.
“Global regulation of the cryptocurrency industry is inevitable for this truly borderless financial system to achieve mainstream adoption,” said Jonathan Levin, Chainalysis Co-Founder and COO. “About a year ago, we made the decision to completely re-architect our technology to scale to support more blockchains. We’ll now be able to add new cryptocurrencies more quickly, an important factor for our customers in meeting regulatory requirements”.
Earlier this year, 21 Cryptos reported that Chainalysis had raised $30 million in a Series B round to help it expand its operations. This was more than double the amount they raised in Series A round.