European-based cryptocurrency exchange platform, Coin Field, partnered with blockchain analysis startup, Chainalysis, to integrate the Chainalysis Know-Your-Customer (KYT) surveillance tool to monitor crypto transactions. Meanwhile, the coming of the AMLD5 into effect means that crypto exchanges in Europe would be faced with more compliance requirements.
CoinField Keen on Combating Money Laundering
Chainalysis announced the news of the collaboration via a press release on PR Newswire on Thursday, February 20, 2020. According to the announcement, the Chainalysis KYT compliance tool will help the crypto exchange monitor transactions on its platform in real-time.
A statement from Jason Bond of Chainalysis reads:
“CoinField’s mission to make cryptocurrency more accessible globally complements our mission to build trust in blockchains. We both believe compliance is critical to the mainstream adoption of cryptocurrency, and we look forward to partnering with CoinField to promote the safe use of cryptocurrencies globally.”
Furthermore, the surveillance software will flag down suspicious transactions across major virtual currencies including bitcoin (BTC), litecoin (LTC), ether (ETH), among others. With the Chainalysis KYT tool, CoinField can track and combat illegal activities such as money laundering on its platform.
The Chief Compliance Officer at CoinField, Roberto Valdes, said:
“Chainalysis KYT enables us to monitor large volumes of cryptocurrency activity and identify high-risk transactions continuously. Chainalysis’s compliance technology excels at meeting anti-money laundering requirements while also ensuring future best practices. It will provide safe and easy monitoring while demonstrating our commitment to compliance.”
In addition to integrating the Chainalysis KYT tool to monitor transactions in real-time, CoinField will also adopt Chainalysis Reactor to further investigate suspicious transactions on the exchange platform.
Back in Agust 2019, Chainalysis launched the Chainalysis KYT Alerts to enable compliance with AML regulations. The alerts tools help virtual currency platforms and financial institutions reduce their reputational and regulatory risks. Also, Chainalysis KYT ALerts work in real-time and monitors transactions across 15 digital currencies including BTC, LTC, ETH, BCH, and ERC-20 tokens.
Crypto Exchanges Seek to Build Trust on Their Platforms
CoinField joins the list of crypto exchanges who have adopted the Chainalysis KYT surveillance software. Exchanges like Bitfinex, Bittrex, and Binance earlier collaborated with the blockchain analysis firm to combat money laundering on their platforms.
Regulatory agencies globally continue to call on crypto exchanges to comply with Anti-money laundering (AML) laws. Some regulators have released new crypto guidelines, focusing on AML and KYC compliance.
According to a recent report on BTCManager, crypto exchanges in Europe could be subject to more compliance requirements, following the implementation of the fifth Anti-Money Laundering Directive (AMLD5).