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Chainalysis Launches Real-Time Alerts for Suspicious Bitcoin, Ether, Litecoin Transactions

August 22, 2019

Blockchain analysis firm Chainalysis is launching a new Know Your Transaction (KYT) service, which flags suspicious crypto transactions. 

As a real-time anti-money laundering (AML) compliance solution, Chainalysis’ KYT software actively monitors transactions involving 15 major cryptocurrencies including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The KYT tools also check transfers made with Maker (MKR), ERC-20 tokens, Tether (USDT), Dai and other widely-used stablecoins.

According to the announcement,

“Chainalysis KYT alerts are designed to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources.”

The alerts’ functionality is built directly into the application’s user interface and API, which allows users to easily track, investigate and take appropriate actions against suspicious cryptocurrency transactions. The KYT tools also allow crypto firms to customize various risk parameters, which can be set according to specific business policies.

The updated KYT software sends alerts each time a transaction involves a potentially risky counterparty and whenever the amount being transferred exceeds a certain level. The alert levels range from low, medium, and high to severe. 

The company aims to address new guidelines issued by the Financial Action Task Force (FATF), an inter-governmental agency that develops standards for anti-money laundering and measures to prevent terrorism financing (AML/CFT). FATF’s new rules are aimed at reducing the number of illicit activities involving digital currencies.

Says John Dempsey, vice president of product at 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.”

In June, Chainalysis partnered with Singapore-based Bitbox exchange, a subsidiary of LINE, Japan’s largest social networking firm with over 700 million active users. The partnership involves Chainalysis providing the exchange with transaction monitoring and anti-money laundering services. 

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