Crypto exchange CoinField announced on Thursday its partnership with Chainalysis for the utilization of its anti-money laundering (AML) compliance solution.
The exchange will integrate the Blockchain analyzer’s know-your-transaction (KYT) solution to prevent money laundering and other illicit activities with digital currencies on its platform.
Commenting on the prospect, Jason Bonds, chief revenue officer at Chainalysis, said: “CoinField's mission to make cryptocurrency more accessible globally complements our mission to build trust in blockchains. We both believe compliance is critical to the mainstream adoption of cryptocurrency, and we look forward to partnering with CoinField to promote the safe use of Cryptocurrencies globally.”
As explained in the press release, the KYT solution will allow the exchange to monitor volumes and identify high risks in real-time. It will also allow tracing of transactions on different blockchains and provides a graphical mapping of cryptocurrency transaction flow.
The exchange will also use Chainalysis Reactor to conduct further investigations into suspicious activity.
The growing market of blockchain analyzers
With the increasing need to comply with regulatory frameworks to prevent illicit activities, the demand for blockchain analyzers is continuously increasing. Also, exchanges have become the first choice of many hackers to liquidate ill-gotten funds.
Last week, Tether integrated the same solution by Chainalysis to bolster its compliance needs. It was also integrated by Bitfinex last year to monitor crypto transactions.
“Chainalysis KYT enables us to monitor large volumes of cryptocurrency activity and identify high-risk transactions continuously. Chainalysis's compliance technology excels at meeting anti-money laundering requirements while also ensuring future best practices. It will provide safe and easy monitoring while demonstrating our commitment to compliance. At the same time, I feel safe that a group of experts is working to improve their products for the benefit of their clients,” said Roberto Valdes, chief compliance officer (AML) at CoinField.
