Chainalysis has released a new service that would alert interested individuals and firms when a suspicious crypto transaction is processed by one of the major blockchain networks. The information was released by Chainalysis in a blog post a few hours ago.
New Tool To Detect Suspicious Transactions
In a recent blog post, Chainalysis announced they have released a new alert system that aims at helping cryptocurrency businesses and institutions reduce their exposure to regulatory and reputational risk. With this new tool, compliance teams will have the possibility to focus on the most urgent activity and also enforce compliance policies.
John Dempsey, VP Product at Chainalysis, commented about this new tool:
“Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”
Chainalysis has always been working in providing real-time transaction monitoring for large amounts of digital currencies moved. The main intention was to identify high-risk behaviour and the way in which alerts are generated when there is a risky counterparty or surpasses a predetermined threshold.
As the firm explains, the alert levels include Severe, High, Medium and Low. All of these categories are based on different factors, including category, services, direct or indirect exposure, the direction of the funds and the number of cryptocurrencies transacted.
In this first release, there are going to be 15 different cryptocurrencies supported by Chainalysis, including Litecoin (LTC), Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and many other top ERC-20 tokens such as Tether (USDT), Maker (MKR) and DAI. In the future, as the service expands and becomes a tool for firms and the whole crypto market, new virtual currencies could be added as well.
“As a New York Trust company, we are required to monitor transactions on and off our platform,” commented Michael Breu, Gemini’s Chief Compliance Officer. “Tools like KYT alerts, which provide real-time and ongoing blockchain analysis, coupled with Geimini’s own compliance policies, help us meet our regulatory obligations.”
With this new tool, financial institutions and crypto-related businesses will be able to keep track of, investigate or take action on risky transfers. Furthermore, customers can customize risk parameters that are based on their own requirements, business policies or resources.
During the last few weeks, the Ponzi scheme PlusToken has been selling many of the funds they gathered from investors on different exchanges.
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