Blockchain analysis provider Chainalysis has announced
the global launch of its compliance solution in partnership with Tether.
Chainalysis Know Your Transaction (KYT) for
Token Issuers is a real-time anti-money laundering (AML) compliance solution
that monitors a token from issuance to redemption.
Jonathan Levin, co-founder of Chainalysis
said: “Stablecoins like Tether, which peg their value to other assets, were
developed to appeal to mainstream audiences who are wary of the price
volatility associated with many traditional cryptocurrencies. By putting proper
AML transaction monitoring in place, Tether is demonstrating its commitment to
transparency and regulatory compliance, further building trust among its
growing user base.”
By integrating with Chainalysis KYT through an
API, token issuers can quickly start monitoring large volumes of activity and
identify high-risk transactions on an ongoing basis. This user interface will
also let them to quickly understand the risk profile of each token holder with
up-to-date data, filtering them by level of risk exposure to identify those
that needs the most instant attention.
A 2019 study from the Massachusetts Institute of Technology stated that publicly reported losses by cyberattacks against blockchain systems since 2011 has exceeded £771 million. According to Stuart Madnick, professor of information technologies at the MIT Sloan School of Management, while the blockchain system represents advances in encryption and security, it is vulnerable in some of the same ways as other technology, as well as having new vulnerabilities unique to blockchain. He said: “An important notion that our research is intended to dispel is that blockchain technology can protect data from misuse.”
Interested in hearing more in person? Find out more at the Blockchain Expo World Series, Global, Europe and North America.
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Credit: Blockchain News