Famous analysis company Chainalysis has partnered with Tether in order to have a real-time Anti-Money Laundering (AML) solution.
The Chainalysis Know Your Transaction (KYT) is in fact a useful system for those who issue tokens in order to follow their history, from issuance to redemption.
In reality, the Chainalysis team has already been working with Tether since December 2019, but now – via API – this real-time stablecoin tracking solution will be implemented in order to detect suspicious transactions.
Jonathan Levin, Co-Founder and Chief Strategy Officer of Chainalysis, explained:
“Stablecoins like Tether, which peg their value to other assets, were developed to appeal to mainstream audiences who are wary of the price volatility associated with many traditional cryptocurrencies. By putting proper AML transaction monitoring in place, Tether is demonstrating its commitment to transparency and regulatory compliance, further building trust among its growing user base”.
Paolo Ardoino, CTO of Bitfinex and Tether, said:
“Working with Chainalysis has allowed us to enhance our AML processes for all transactions involving the Tether token. As one of the largest cryptocurrencies by market capitalization, we have a responsibility not just to regulators but also to the cryptocurrency ecosystem to have transparent, automated compliance solutions in place to handle any amount of volume at any given time. This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users. This is achieved without sharing our user’s identifying information, as such data is only kept on our servers”,
Tether recently announced the stablecoin anchored to the price of gold, Tether Gold, and also support for the Algorand blockchain.
The goal, explained Ardoino a few days ago in an interview with The Cryptonomist, is to have a cryptocurrency that simplifies as much as possible the movement of assets between exchanges and blockchains, resulting in greater liquidity and ease of use, which could also lead to the so-called mass adoption.