Bitcoin Global News (BGN)
February 13, 2019 -- ADVFN Crypto NewsWire -- The
cryptocurrency industry is often perceived as a kind of lawless,
“wild-west” digital environment. However, the nature of
transactions using cryptocurrencies isn’t fueled by the currencies
themselves, but rather illicit activity that has already been
happening on the internet. And on governance of the currencies
themselves, Chainalysis is exactly the type of startup one could
expect from a decentralized system of currency.
Chainalysis was founded in New York
City and has the primary objective of establishing trust in
blockchain networks between people, businesses, and governments.
The start up just completed a Series B funding round totalling $30
million.
“The investment and the timing of
it shows that, despite fluctuating prices, there is quite a strong
conviction among some very big VCs that this is not a short term
play.” - Michael Gronager, CEO and co-founder of
Chainalysis
It was led by VC firm Accel and
included additional investments from Benchmark, which led
Chainalysis’ $16 million initial round last April. The startup has
noted that some of the funding will be used to open a new office
and research and development lab in London. The company has ongoing
work with Barclays in the UK.
Digital
Vigilantes
Their software was initially
designed to spot connections between entities on the Bitcoin
blockchain, and in this way helps businesses and banks to detect
fraud and prevent money laundering. They have now extended their
software to be used on the Bitcoin Cash, Ether and Litecoin
networks as well - with plans to further increase this pool of
cryptocurrencies. This type of mindfulness will become more and
more important with the increased prevalence of stablecoins. The
company offers two major services:
Chainalysis Reactor -
Investigation software suite
Chainalysis cryptocurrency
investigation software helps law enforcement and financial
institutions identify and stop bad actors who are using
cryptocurrencies for illicit activity such as fraud, extortion, and
money laundering.
Chainalysis
Know-Your-Transaction - Compliance software
suite
The intuitive interface has been
designed with anti-money laundering (AML) compliance workflows in
mind. The service offers real-time transaction screening via the
KYT API, monitoring large volumes of activity and identifying high
risk transactions on a continuous basis.
This services includes KYT for
Token Issuers, which assesses risk of exposure to illicit activity
specific to token issuers at point of issuance or
redemption.
By: BGN Editorial Staff