Chainalysis, the blockchain analysis company, today announced the roll-out of its cryptocurrency compliance solution for BITBOX, the digital asset exchange operated by LINE, the mobile messaging platform. The need for stricter compliance operations for cryptocurrency businesses and social and messaging apps that expand into cryptocurrency is rising in anticipation of global regulatory guidance.
International regulation of cryptocurrency is quickly gathering pace. While jurisdictions like the United States have had regulatory expectations or requirements in place for years, any foreign organizations conducting “substantive” business with U.S. persons must comply with U.S. regulations. Further, the Financial Action Task Force (FATF), the inter-governmental body that sets global standards relating to anti-money laundering and combating the financing of terrorism (AML/CFT), will issue guidance this month for jurisdictions that fall under its oversight, which consists of over 180 countries including Japan and South Korea, to start regulating their virtual asset markets.
Businesses like LINE understand that building a culture of compliance and implementing blockchain analysis technology from the beginning are crucial to operating a global regulated exchange. This proactive approach is key to industry growth and success.
“We have heard from regulators that blockchain analysis is an important part of an effective anti-money laundering solution, and will be a significant factor in cryptocurrency businesses’ ability to comply with global regulations,” said Jonathan Levin, Co-Founder and COO, Chainalysis. “Exchanges like BITBOX that implement these best practices ahead of regulatory evaluations will show a dedication to compliance.”
“Chainalysis’ compliance technology excels at meeting anti-money laundering requirements while also ensuring future best practices,” said Youngsu Ko, CEO of LINE Tech Plus, LINE. “By adopting Chainalysis KYT, BITBOX will provide safe and secure trading experiences while demonstrating our commitment to compliance.”
Chainalysis KYT (Know Your Transaction) applies global AML standards to each transaction across all users within an organization’s user base. The solution enables cryptocurrency businesses and financial institutions to monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis. They can also leverage the user interface to quickly understand the risk profile of each user with the latest data and filter them by level of risk exposure to identify those that require the most immediate attention. Chainalysis KYT is used by approximately 110 cryptocurrency businesses and financial institutions in 35 countries.
In light of global regulatory momentum, the appetite for cryptocurrency compliance solutions in Asia Pacific has grown substantially. Over the last year and a half, Chainalysis has more than doubled its client base in Asia-Pacific and increased contracted revenue from clients there by more than 20x. In April, Chainalysis also secured a strategic investment from Sozo and MUFG to close out its Series B round at $36M, helping to provide critical market insights for customers in the region.
SOURCE Chainalysis Inc.