Bittrex to Use Chainalysis Tool to Identify High-Risk Transactions

Published at: Sept. 27, 2019

Cryptocurrency exchange Bittrex is incorporating Chainalysis know your transaction (KYT) tool to spot high-risk transactions.

Compliance standards

In a Sept. 26 press release, Chainalysis Inc. announced the deployment of its real-time transaction monitoring solution to the Seattle-based blockchain trading platform Bittrex.

In an attempt to meet “new and existing regulatory and compliance standards,” Bittrex incorporated Chainalysis KYT, a software solution that monitors high volumes of activity in the crypto space and helps identify high-risk transactions. Bittrex CEO Bill Shihara said:

"As our business continues to grow, having a thorough and reliable transaction monitoring system in place is crucial in demonstrating our commitment to compliance. [...] Chainalysis KYT is an important tool in having an effective anti-money laundering program by helping us prevent, detect, and address unlawful behavior."

Cointelegraph reported in August that the blockchain analytics firm launched alerts for suspicious transactions across 15 major cryptocurrencies. Today Chainalysis KYT monitors 25 cryptocurrencies and will continue to add additional cryptocurrencies in the nearby future.

FATF to strengthen control over crypto exchanges

The news follows the June announcement by the Financial Action Task Force’s (FATF), which said that cryptocurrency exchanges must assure digital currencies aren’t used in money laundering and related crimes and will have to comply with anti-money laundering and combating the financing of terrorism (CFT) procedures in the same way traditional institutions do.

Tags
Blockchain
Regulation
Bittrex
Related Posts
Bittrex Exchange Denies It Sought to Collaborate With Ukrainian Government
A Ukrainian government official said that United States cryptocurrency exchange Bittrex sought to collaborate with the Ukrainian government on developing the country’s cryptocurrency industry. In a Nov. 20 interview with domestic blockchain media outlet ForkLog,. Deputy Minister of Digital Transformation Alexander Bornyakov claimed that Bittrex contacted the Ukrainian government to this end. Referring to Ukraine’s recent memorandum of understanding with Binance to collaborate on creating crypto legislation in the country, Bornyakov said, “After we announced it, we began receiving requests from Bittrex, from Coinbase." Bittrex did not contact the Ukrainian government Bornyakov’s statement was soon reported by local publications, interpreting …
Blockchain / Nov. 26, 2019
What the SEC can learn from the German regulator
The United States Securities and Exchange Commission’s chairperson Gary Gensler announced this month that the crypto industry should not escape the purview of the regulator. He highlighted that decentralized finance (DeFi) trading and lending protocols need particular attention when it comes to investor protections. Regulation can extend into a menu of options that covers custody, reporting, counterparty verification and asset classification and issuance. Reports are surfacing that people are waiting with bated breath on how the SEC will regulate the DeFi industry, but Germany's Federal Financial Supervisory Authority, also known as BaFin, has found a way to apply existing securities …
Technology / Aug. 12, 2021
US Treasury targets NFTs for potential high-value art money laundering
The U.S. Department of the Treasury released a study on the high-value art market, highlighting the potential in the nonfungible tokens (NFT) space to conduct illicit money laundering or terror financing operations. The treasury’s “Study of the facilitation of money laundering and terror finance through the trade in works of art” suggested that the increasing use of art as an investment or financial asset could make the high-value art trades vulnerable to money laundering: “The emerging online art market may present new risks, depending on the structure and incentives of certain activity in this sector of the market (i.e., the …
Adoption / Feb. 6, 2022
Shopify Bitcoin payments integration triggers legal questions from the community
Following the announced integration of the payment app Strike with e-commerce platform Shopify to accept Bitcoin (BTC) through the Lightning Network, the crypto community raised concerns over the legal implications of the move. Crypto researcher Matt Ahlborg believes that the event is a very significant development for BTC as it allows the offloading of BTC without the need to go through the know-your-customer (KYC) process. What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC'ing through an exchange first. If this is true, it is actually …
Adoption / April 8, 2022
Bank of Israel experiments with central bank digital currency smart contracts and privacy
On Monday, the Bank of Israel released the results of a lab experiment that examined user privacy and the use of smart contracts in payments. This was the central bank’s first technological experiment with a central bank digital currency (CBDC). The first stage of the experiment modeled the sale of a car within a two-tier system with an intermediary payment service provider. The bank said that the service provider completed Know Your Customer (KYC)/Anti-Money Laundering (AML) checks and provided the necessary blockchain addresses. A nonfungible token (NFT) was issued to show ownership of the car in the absence of a …
Adoption / June 21, 2022