What is Chainalysis?
Chainalysis provides blockchain tracking tools to financial institutions and governments to drive compliance efforts such as AML and KYC.
To reach their full potential, cryptocurrencies undoubtedly require a high level of trust and transparency. Chainalysis’s goal is to establish more transparent anti-money laundering (AML) regulations for crypto businesses to achieve these fundamental principles. Then, who would use Chainanalysis?
Chainalysis made it public in 2015 when two FBI agents stole Bitcoin (BTC) while investigating the Silk Road darknet market. Chainalysis is a data platform based on blockchain technology that helps government and commercial sectors detect and prevent the illegal use of cryptocurrencies. Chainalysis was founded in 2014 co-founded by Jonathan Levin and Michael Gronager. Headquartered in New York, with offices in 60 countries, Chainalysis provides software services, data management, and research to government agencies, exchanges, financial institutions, insurance companies, and cybersecurity firms.
Data from Chainalysis is used to drive compliance, investigative, and market intelligence tools that help solve some of the world’s most high-profile criminal cases and give more consumers safe access to virtual assets.
The transformative technology behind cryptocurrencies has opened up new markets around the world, but is this innovation reliable? Chainalysis is playing a more important role in establishing auditing practices and compliance controls, allowing the crypto market to continue to grow.
This article will discuss who is using Chainalysis and answer the following questions: How good is Chainalysis? How does Chainalysis work? How much does a Chainalysis license cost? How to use Chainalysis to monitor cryptocurrencies?
How does Chainalysis work?
Chainalysis offers five different types of products to monitor crypto assets, including Chainalysis Business Data, Chainalysis KYT, Chainalysis Kryptos, Chainalysis Market Intel, and Chainalysis Reactor.
Chainalysis Business Data
Chainalysis Business Data provides crypto companies with an additional layer of customer intelligence, allowing them to understand customers before and after they leave the platform, customize product offerings and enhance customer experience.
Additionally, it allows companies to find the channels that have the greatest impact on their business and make decisions based on data. Data is updated regularly to ensure that adjustments are made to the changing ecosystem.
A simple database integration allows users to enhance current information for deeper insights, or execute queries to build custom Chainalysis reports.
Chainalysis KYT
Chainalysis KYT, where KYT refers to Know Your Transaction. Chainalysis KYT can help businesses reduce manual operations, comply with local and international norms, and securely interact with decentralized exchanges (DEXs), merchant services, and non-fungible token (NFT) platforms.
Chainalysis KYT continuously monitors transactions across all crypto assets and can be used to detect high-risk activity patterns. Additionally, it can help freeze deposits from hackers, shielding Ethereum accounts and all addresses controlled by the entity to prevent all criminal activity.
Additionally, you can also set up real-time notifications based on your company’s “anti-money laundering” rules to assist AML officers in understanding encryption rules.
Chainalysis Kryptos
Chainalysis Kryptos leverages the industry’s most trusted blockchain data to provide crypto organizations with in-depth on-chain metrics. The tool can assess the behavior of over 6,500 service providers like Kraken.com or Gemini.com, allowing you to make informed judgments about the cryptocurrency companies you interact with.
Using the Chainalysis Kryptos crypto monitoring tool, it is possible to assess the exposure of crypto service providers to dark websites and sanctioned jurisdictions.
Chainalysis Market Intel
Chainalysis Market Intel leverages the transparency of blockchain to provide real-time data and unique insights for cryptocurrency investment and research decisions.
Since 2014, Chainalysis has been tracking the crypto activity of hundreds of companies and linking it to real-world entities, steadily creating a proprietary dataset that underlies Market Intel’s measurements. With this tool, auditable evidence is available for every marked entity, giving you a 360-degree view of the entire crypto environment.
Chainalysis Reactor
The reactor is research software that connects cryptocurrency transactions with real-world entities. Chainalysis Reactor studies criminal activities such as the movement of stolen funds, NFT transactions, and flash loans. So, how can you use Chainalysis to analyze blockchains?
Reactor Search uses identifiers to identify entities that control wallets by entering encrypted addresses and automatically scanning thousands of social media forums and dark websites.
When that entity makes a new transaction, Chainalysis sends a signal that allows you to visualize cryptocurrencies, search for and monitor them through an intuitive interface. Additionally, investigators can utilize automated wayfinding to initiate investigations, share charts directly, download raw data for a full record of findings, or set up “watches” to monitor future transactions.
How can I use Chainalysis to ensure the security and compliance of my crypto business?
Crypto businesses can install Chainalysis software or train employees using CRC, CISC, or KYT certification programs.
Given the far-reaching impact of cryptocurrency regulation and the staggering rate of innovation in the field, the cryptocurrency industry is well-positioned to work with authorities to create new and more effective regulatory frameworks.
Organizations that want to achieve security and compliance for their crypto business can adopt Chainalysis cryptocurrency investigation software and have their employees CRC, CISC or KYT certified.
Cryptocurrency-compatible software will help DEX and decentralized finance (DeFi) organizations understand and comply with local regulations. Chainalysis investigations and compliance specialists can guide your team even when conducting the most complex investigation or developing a robust compliance program.
Do Coinbase and Binance use Chainalysis for compliance business?
Both Coinbase and Binance use Chainalysis software to monitor crypto transactions and comply with AML regulations.
Chainalysis assists Coinbase in implementing anti-money laundering policies. Coinbase has become the top of crypto assets sought after by investors, thanks to compliance, strong security, ease of use and investment focus.
Binance has partnered with Chainalysis to build a core compliance program to move into the next phase of expansion with a blockchain monitoring solution. By using Chainalysis software, Binance can comply with AML regulations. Crypto-backed companies like Binance will find it easier to open a bank account.
Do Coinbase and Binance use Chainalysis for compliance business?
Both Coinbase and Binance use Chainalysis software to monitor crypto transactions and comply with AML regulations.
Chainalysis assists Coinbase in implementing anti-money laundering policies. Coinbase has become the king of crypto assets sought after by investors, thanks to compliance, strong security, ease of use and investment focus.
Binance has partnered with Chainalysis to build a core compliance program to move into the next phase of expansion with a blockchain monitoring solution. By using Chainalysis software, Binance can comply with “anti-money laundering” regulations. Crypto-backed companies like Binance will find it easier to open a bank account.