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Fireblocks will use Chainalysis KYT

Security

en.cryptonomist.ch 16 June 2020 06:20, UTC
  
Reading time: ~2 m

The blockchain analysis company Chainalysis has announced that Fireblocks will use its KYT (Know Your Transaction).

Fireblocks is an enterprise-level platform for storing, transferring and issuing digital assets, and will use Chainalysis’ KYT to monitor cryptocurrency transactions in real-time and provide its customers with a new standard of security and compliance. 

Some of Fireblocks’ clients include banks, liquidity providers, market makers, custody services, lending platforms, and even crypto exchanges. They will now be able to use Chainalysis KYT directly through the Fireblocks interface and API. 

In addition, the integration of KYT services within the Fireblocks platform will allow sending and receiving funds compliant with AML and will customize transaction policies based on risk scores. 

This will allow Fireblocks to automatically record AML transaction reports and share them with regulators.

The objective of this partnership is to help financial institutions and crypto businesses to guarantee secure digital asset transfers that comply with AML best regulatory practices. 

Fireblocks vice president and head of business development, Rob Salman, said: 

“Fireblocks and Chainalysis share the belief that building safe and robust infrastructure for the cryptocurrency ecosystem is critical for institutional adoption”. 

Chainalysis’ Chief Revenue Officer, Jason Bonds, added: 

“Both security and compliance are integral to building trust in the cryptocurrency industry. By bundling product offerings with our integration partners through the Chainalysis Partner Program, we are ensuring our customers adhere to security and AML best practices, ultimately making cryptocurrency more accessible for all”.

Regulatory conformity, and compliance with anti-money laundering regulations, are critical to enabling financial institutions to handle digital assets securely. Given that the basic use of many of them is anonymous, this does not guarantee a sufficient level of security to institutions that would be forced to comply with all the strict anti-money laundering rules. 

The blockchain analysis tools of Chainalysis allow to greatly increase the level of control, in order to detect any transactions not in compliance with the law, or suspected of not being so. 

For financial institutions, this additional step to verify AML compliance is absolutely essential to be able to handle anonymous digital assets without interference.


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