Are the anti-laundry checks already being performed to analyze world crypto flows?
The necessity as far as the importance of KYC and AML in the traditional banking and financial world as far as for operations with fiat currencies. Yet, as the cryptocurrencies adoption is massively spreading and the popularity is arising, similar services for cryptocurrency source and transaction origins appear on the market. Despite all the fintech and Blockchain achievements worldwide during the recent years, cryptocurrencies and mostly Bitcoin are still sometimes considered as a payment method for illegal and dangerous dark market activities, products and instruments. At the same time, Financial Action Task Force (FATF) and the EU 5th Anti-Money Laundering Directive oblige all exchanges operating with digital currencies to check the sources and origins of crypto flows blocking the suspicious ones.
The crypto compliance services analyze transactions for involvement in criminals/for a criminal character. What are these services based on while making a decision on each and every particular transaction that passes through them?
Elliptic (https://www.elliptic.co) is working on cryptocurrency crime compliance since 2013 being pioneers and leaders in this field. Their first compliance tool based on Blockchain analytics launched in 2015 analyzes over 100 cryptocurrencies for crypto businesses, financial institutions and regulators in order to detect and prevent crime being performed and financed with digital currencies. The Elliptic solutions include wallet screening, transaction monitoring, crypto investigations and VASP screening.
Being a cryptocurrency AML compliance provider, Traceer (https://traceer.co) offers its individual users instant checks of either Bitcoin address or transaction on fraudulent origin. The Traceer fast solution is available as a user-friendly mobile application for IOs and Android. Traceer also provides Bitcoin verification tools to corporate clients to de-anonymize criminal actions and perform effective investigations in accordance with international and national financial legislations.
The CipherTrace (https://ciphertrace.com) risk intelligence solution protects banks, exchanges and institutions from money laundering risky transactions. Their coverage being the largest one with over 2000 cryptocurrency entities ensures valuable data attribution, analytics and proprietary clustering algorithms at their best. CipherTrace also detects crypto risk migration for banks and financial institutions and even Bitcoin ATM compliance. They have recently published a Geographic Risk Report with world first asset industry global KYC assessment.
Chainalysis (https://www.chainalysis.com), the Blockchain analysis company, provides software, research data and services to crypto-related companies and projects, exchanges and authorities to solve and prevent high-profile cyber-criminal cases providing a safer access to digital funds in over 50 countries. Chainalysis tools offer monitoring and updates in real time, actionable alerts linking real-world entities to digital currency activities effectively visualizing the flow of funds.
Thus, Know Your Client turns into Know Your Transaction fundamental principle while Bitcoin and other reputed cryptocurrencies are gaining their weight as an alternative everyday financial reality and not only as a trading or investment instrument.