In a recent press release, Chainalysis announced the launch of Know Your Transaction (KYT). KYT is a real-time anti-money laundering (AML) compliance solution for monitoring suspicious cryptocurrency transactions.
This is the first compliance alerts solution available which includes all 15 cryptocurrencies supported by Chainalysis. The cryptocurrencies include Bitcoin, Ether, etc, and top stablecoins and ERC-20 tokens such as Tether, Maker, and Dai. Additional cryptocurrencies will be added soon.
Chainalysis KYT alerts help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk. This helps the compliance teams to enforce compliance policies while better allocating resources.
“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices,” said John Dempsey, VP Product, Chainalysis. “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.”
Chainalysis KYT provided real-time transaction monitoring for large volumes of cryptocurrency activity. It will now generate an alerts signal whenever a transfer involves a risky counterparty and crosses a threshold value. These alert levels are categorized into Severe, High, Medium, and Low. The alerts are based on factors such as category, service, direct versus indirect exposure, the direction of funds, and amount.
The user interface and API of Chainalysis KYT application will help cryptocurrency businesses and financial institutions to keep track of, investigate, or take action on risky transfers. Also, it will leverage the customers to customize the risk parameters based on their business policies.