Crypto exchange Bittrex has inked a partnership deal with Chainalysis, a blockchain intelligence platform, to boost the compliance solution on its platform.
Announced on Tuesday, the digital asset exchange will use Chainalysis’ know your transaction (KYT) solution to comply with the existing regulatory standards of its operating markets.
Commenting on the partnership, Jonathan Levin, co-founder and chief strategy officer at Chainalysis, said: “As we focus on building out our products to accommodate more cryptocurrencies beyond Bitcoin, working with cryptocurrency exchanges that focus on offering a broad array of coins is mutually beneficial. Bittrex is dedicated to offering a breadth of cryptocurrencies to their customers and enforcing comprehensive compliance policies.”
Monitoring blockchain for suspicious activities
Chainalysis’ KYT solution monitors large volumes of cryptocurrency activity and identifies high-risk transactions. The exchange is planning to profile its user activities in terms of risks. With this, it can also prioritize transactions.
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The blockchain intelligence firm’s solution supports 25 digital currencies including Ether, Bitcoin Cash, Litecoin, Tether, Maker, and Dai, and has plans to add more to the list.
“As our business continues to grow, having a thorough and reliable transaction monitoring system in place is crucial in demonstrating our commitment to compliance,” Bill Shihara, chief executive of Bittrex, said. “Chainalysis KYT is an important tool in having an effective anti-money laundering program by helping us prevent, detect, and address unlawful behavior.”
Chainalysis is one of the heavily funded blockchain startups and to date has raised over $53 million, according to CrunchBase. After securing $30 million in Series B funding round earlier this year, the company also nabbed $6 million in funding from Mitsubishi UFJ Financial Group (MUFG) and Sozo Ventures as a strategic investment.
The New York-based company’s client list also includes Binance, one of the largest global crypto exchanges in terms of adjusted volume.