Paxful, a peer-to-peer Bitcoin exchange, announced on Monday the integration of Chainalysis’ know-your-customer (KYT) solution to enhance security on the platform.
The solution will allow the exchange to monitor the transactions in real-time, thus investigate and take action on suspicious transactions. With real-time alerts on the highest-risk activity, the KYT solution will allow compliance teams to focus on the most urgent activity, better allocate resources to enforce compliance policies, and fulfill their regulatory obligations to report suspicious activity.
The solution will also increase due diligence on the exchange, making the platform more secure to its users.
Commenting on the integration, John Dempsey, vice president of product at Chainalysis, said: “Compliance is the key factor for establishing trust in cryptocurrency exchanges. By adopting a case-by-case approach to evaluating P2P venues, we are helping to broaden trust and transparency across the cryptocurrency ecosystem.”
Bosting security of crypto exchanges
With this integration, Paxful will be able to block outgoing transactions to high-risk addresses linked to terror financing, sanctioned addresses, child abuse websites, and stolen credit card platforms.
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As illegal activities on crypto platforms are increasing, the demand for blockchain analyzers is increasing day by day. With many high-profile partnerships, Chainalysis has become one of the forerunners in the blockchain security industry.
Notably, KYT is one of the many compliance solutions offered by the New York-headquartered company.
“At Paxful, compliance and security are top-of-mind as we work to keep the marketplace free from fraud and scammers,” Lana Schwartzman, chief compliance officer at Paxful, said. “Partnering with Chainalysis was a great choice as we work to protect our users and instill in them the importance of regulation and compliance on P2P marketplaces like ours.”