Digital currency exchange Bitfinex has incorporated a compliance tool from blockchain analysis company Chainalysis to monitor digital currency transactions in “real time.”
Announced on December 12, Chainalysis stated its “Know Your Transaction (KYT)” compliance software would assist Bitfinex in monitoring huge volumes of digital currency activity and recognize high-risk transactions consistently. This will, therefore, help the exchange in focusing on the most urgent activity and uphold compliance policies.
Chainalysis’ solution “aligned with what we were seeking to keep bad actors off of our platform, while protecting the privacy of our users,” stated Bitfinex chief compliance officer Peter Warrack. He further said that the solution “does not share information identifying users, which is kept strictly in-house.”
Chainalysis, as of now, tracks 41 digital currencies and stablecoins, including bitcoin (BTC), bitcoin cash (BCH), ether (ETH), Tether (USDT), Maker, and Dai. It is anticipated to include support for XRP and a few different coins soon.
Bitfinex joins Bittrex and Binance exchanges, who just started utilizing Chainalysis’ KYT software to monitor suspicious transactions. Established in 2014, Chainalysis offers compliance tools to businesses, banks, and governments. Its top customers include Barclays, the U.S. Securities and Exchange Commission, and EU law enforcement agency Europol, among others.
A month ago, Chainalysis cut its workforce by around 20% (laying off 39 staff) to be on the “path to profitability.”