Blockchain intelligence platform Chainalysis has onboarded three new clients from Australia, after having signed payments provider Assembly Payments and cryptocurrency exchanges CoinSpot and CoinJar.
Westpac-backed fintech Assembly Payments will use Chainalysis Kryptos, which operates as a crypto-focused risk data clearinghouse for financial institutions. The solution helps them make more informed decisions about the cryptocurrency businesses they work with, offering a reference directory for related services and their on-chain activity.
Unlike competitors, Assembly’s platform manages transactions across multiple payment types and countries, including mobile and point-of-sale, digital wallets, debit and credit cards.
The Aussie fintech will leverage Kryptos platform to parse regulatory hazards and build risk assessment models, as well as manage the complexities of offshore expansion given the different compliance issues between jurisdictions. Hence, Partnering with Chainalysis was the solution.
Chainalysis has also signed CoinSpot, one of Australia’s top cryptocurrency platforms by trading volume, and Coinjar, which claims to be the country’s longest-running digital currency exchange. According to their own figures, both exchanges now have their user bases topping one million, who use their services to buy, sell, store, and spend digital assets.
“Ensuring we have as many measures in place to protect CoinSpot customers from bad actors in the industry is a top priority for our business. We are strongly in support of promoting trust and compliance across the eco-system. Access to these data facilities is yet another instrument that enables CoinSpot to provide industry-leading customer service and security as Australia’s most trusted exchange.” said Russell Wilson, CEO at CoinSpot.
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Record Volumes Boosts the Demand on Crypto Compliance
Chainalysis says the new partnerships arrive as prospects for cryptocurrencies are looking promising in Australia. As Bitcoin’s price more than doubled recently, the trading volumes set new records, more than tripling from last year to around $1 billion in monthly turnover.
The boom in crypto activity has prompted the Australian tax office to ask the nation’s cryptocurrency users to report their operations in order to verify tax compliance. Warning them of stiff penalties if they fail to report income or pay tax on crypto holdings, the ATO said over 350,000 individuals are expected to receive letters by mail or emails to ‘remind them’ of their obligations.
Thousands of Australian taxpayers across the country have already received instructions on how to accurately report their cryptocurrency-related income and amend their tax returns, if necessary.
These developments have created greater appeal for Chainalysis’ compliance software, which helps both crypto firms and law enforcement agencies detect suspicious activity in order to battle any related criminal activity. It uses pattern recognition, algorithms, and millions of open source references to “identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity,” the company says.
Chainalysis’s team of data scientists and programmers are leveraging a wide range of quantitative data sources, including cryptocurrency exchanges and blockchain data sources, to clarify and present the view of the cryptocurrency and blockchain ecosystem.
“By leveraging the same dataset and suite of solutions trusted by regulators, law enforcement and payments providers in Australia, we feel confident that we are providing our customers with the best and safest possible platform to transact,” said Asher Tan, CEO, CoinJar.