Analyst firm Blockchain Chainalysis partnered with Fireblocks, the institutional digital asset security specialist, to integrate its Know Your Transaction (KYT) system to monitor crypto-currency transactions on the platform.
According to an announcement on June 15, the association will strengthen Bitcoin Trader security standards and anti-money laundering (AML) compliance.
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Strengthening AML compliance
KYT allows users to automatically track transactions based on risk patterns and ensure that unapproved transactions are not executed without manual review. Speaking to Cointelegraph, Fireblocks CEO Michael Shaulov said:
“Compliance and security are two of the most important pillars for digital asset storage and transfer today. By integrating with Chainalysis KYT, Fireblocks is removing the regulatory barriers that exchanges, branches, banks, liquidity providers and market players face when transferring cryptosystems, ensuring that these institutions can be as secure and compatible as possible, all on the Fireblocks platform.
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Shaulov claims that in 2019 alone, more than $4 billion in crypto currency was lost through fraud, fund manipulation, piracy and theft, leading the United States Treasury Department to classify digital assets as one of the largest illicit assets.
In addition, the ability to better meet AML standards can be a cost-saving measure for companies in space. A recent CipherTrace study revealed that banks and traditional financial systems paid over $6.2 billion in AML fines in 2019.
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In the future, Shaulov said there are short-term plans to expand the Fireblocks Network by integrating new institutions, supporting new tokens and integrating with new exchanges.
Recently, Fireblocks launched its asset transfer network. The open network allows institutions to find and connect with other companies to transfer assets in the chain, simplifying settlement and post-trading operations.