Chainalysis, a blockchain company that helps bitcoin companies and banks detect fraud and money laundering, has launched a warning system for 15 major cryptocurrencies.
The warning system is part of something called “know your transaction” (KYT) and is supposed to alert in real time when suspicious transactions occur, Chainalysis writes in a press release.
“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices”, says John Dempsey, vice president of product at Chainalysis, in the press release.
Ment to help crypto exchanges
The idea is that the new tool will help crypto exchanges and other financial institutions reduce regulatory risk.
In the KYT service, customers have always been able to monitor large transactions in real time to detect suspicious behavior. What’s new is that the system now also alerts as soon as a transaction is sent to a suspicious recipient and crosses a value threshold, according to the press release.