Chainalysis Launches New AML Solution for Stablecoins
Chainalysis a crypto surveillance firm has now launched a special edition of its real-time anti-money laundering (AML) compliance solution, “Know Your Transaction (KYT)”, for stablecoins.
Chainalysis, which was founded by Dr. Michael Gronager, Jan Moller and Jonathan Levin in 2014, is a company which has two main products the “Chainalysis Reactor” and “Chainalysis KYT”. These products are used for investigation and compliance purposes by institutional clients like banks and crypto exchanges, as well as governmental bodies from around the world.
Chainalysis announced on January 24th via a press release that “the launch of Chainalysis Know Your Transaction (KYT) for Stablecoins, a real-time anti-money laundering (AML) compliance solution for monitoring stablecoins across every transaction through their full lifecycle, including issuance and redemption.” It states further that the stablecoin version of Chainalysis KTT is ” the first solution of its kind to be applied to stablecoins, cryptocurrencies designed to minimize price volatility, usually by pegging or backing their value to other assets,” and the company believes that this launch demonstrates its “commitment to providing market-leading compliance technology across a comprehensive suite of cryptocurrencies and tokens” at an opportune moment since “stablecoins are rapidly growing in popularity.”
According to the company, it used to be “difficult for cryptocurrency businesses to enact proper AML controls, making it challenging to establish banking relationships and exposing them to regulatory and reputational risk;” however, Chainalysis KYT “enables them to monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis.” Furthermore, it helps stablecoin issuers to “meet higher AML compliance standards that support broader adoption.”
In October 2018, Chinalysis announced that it plans going to use its compliance software suite to help crypto exchange Binance comply with anti-money laundering (AML) regulations around the globe.