Money laundering is a big concern for the world of traditional finance, but the young age of cryptocurrency leaves many opponents of the asset worried about this illicit activity. As platforms work to be compliant with the current rules surrounding money laundering, Bitfinex recently added a compliance solution from Chainalysis to their platform.
- The new compliance solution is meant to protect platforms from the dangers of money laundering.
- Chainalysis presently serves a total of 42 cryptocurrencies, though it previously only served Bitcoin.
Bitfinex is a platform that allows consumers trade both cryptocurrencies and major digital assets, much like other crypto exchanges. However, the market is becoming progressively stricter about the compliance procedures associated with anti-money laundering efforts. To ensure that Bitfinex keeps up with the requirements, the platform has employed a compliance solution with Chainalysis to “detect and prevent money laundering,” as well as other illicit activities for many cryptocurrencies, according to a press release from PR Newswire.
Jason Bonds, the Chief Revenue Officer for Chainalysis, commented that Bitfinex is often sought out by traders in the crypto space that are “seeking liquidity across various cryptocurrencies.” With this volume, the only way to be compliant with global regulations is with “an automated blockchain analysis solution,” which is what Chainalysis is providing. Bonds added, “We are thrilled to work with Bitfinex as we mutually invest in supporting multiple cryptocurrencies.”
Though primarily focused on Bitcoin earlier this year, Chainalysis has gradually expanded, leading them to now include 41 other cryptocurrencies. Some of these cryptocurrencies include Ether, Bitcoin Cash, Litecoin, Tether, Maker, Dai, and other ERC-20 tokens.
With the use of Chainalysis KYT, Bitfinex and other businesses have the ability to watch over massive crypto volumes, while continually identifying any high-risk threats. The alerts in real time make it easier for compliance teams to deal with imminent threats, while enforcing the policies set forth and mitigating resources.
Peter Warrack, the Chief Compliance Officer for Bitfinex, complemented the work of Chainalysis, calling their compliance solution “top-of-the-line, comprehensive, and privacy-safe.” He explained that these qualities allow Bitfinex to keep the bad players of the platform and to protect the good players that presently operate on it. Warrack remarked,
“The solution does not share information identifying users, which is kept strictly in-house. We are excited to work alongside the Chainalysis team to continue to build out a safe and robust platform for our users.”
The cryptocurrency ecosystem will continue to evolve, and regulatory requirements will follow suit. Any company that isn’t aggressive about pursuing and following these new requirements will quickly fall behind the in market, but Chainalysis has already made many accommodations to serve multiple blockchains ahead of these deadlines.