The tool is called Chainalysis Know Your Transaction (KYT) and is a real-time AML (Anti-Money Laundering) service for monitoring transactions of 15 different cryptocurrencies.
The Chainalysis service was created to mitigate the risk of possible breaches in the management systems of those who handle users’ funds, as stated by John Dempsey, VP Product of Chainalysis:
“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices. Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”
This tool also allows the customisation, through a user interface and its API, of the parameters to be kept under control so as to have a personalised plan according to one’s needs.
Michael Breu, CCO of Gemini, expressed his enthusiasm for the initiative.
“As a New York Trust company we are required to monitor transactions on and off our platform. Tools like KYT alerts, which provide real time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies, help us meet our regulatory obligations.”
Chainalysis was recently the subject of a small scandal when a former employee published on Reddit sensitive information about the company.