New ConsenSys compliance service to pin down ‘bad guys’ on Ethereum projects

ConsenSys, a blockchain company, announced on Monday, it launched a compliance program to help pin down ‘bad guys’ in the cryptocurrency Industry. The new ConsenSys compliance service is specially designed for projects and digital currencies in the Ethereum blockchain.

ConsenSys compliance service to focus on Ethereum projects

As Bloomberg reported, the ConsenSys compliance service is aimed at checking regulatory requirements on various cryptocurrency exchanges and Decentralized Finance (DeFi) projects. It would scan for AML, including KYC or ‘know your customer,’ compliance.

While commenting on the development, one of the officials at ConsenSys, Lex Sokolin said in the report:

There are more and more people building decentralized apps that need this as a Lego piece. […] What we are trying to do is make activity on the decentralized financial infrastructure much more safe, transparent, much easier to trace.

Banks and several other traditional payment systems are always active in monitoring suspicious activities, such as money laundering. KYC policies are used in the digital currency Industry to regulate illegal transactions; however, it has become spotty as scrutiny raises.

Thus, the new ConsenSys compliance service is expected to offer ‘know your transaction’ or KYT compliance analysis. This will equally help to ensure user privacy, since it analyzes activities of addresses, instead of the identity of people behind the address. The idea is to ensure that crypto transactions can still be conducted anonymously while still meeting up with regulatory standards.

The compliance service will be compatible with Ethereum 2.0

As explained, the ConsenSys compliance service is explicitly open to projects issued on the Ethereum blockchain, with a significant focus on DeFi and digital currency exchanges. ConsenSys said the program is able to monitor transactions of about 280,000 cryptocurrencies on Ethereum. 

It will support several Ethereum token standards like ERC20, ERC179, etc., including stablecoins like Tether (USDT), USDC, and DAI. According to the blockchain firm, the compliance program is also designed to support the next major upgrade on the blockchain, Serenity.