Blockchain analysis provider Chainalysis has announcedthe global launch of its compliance solution in partnership with Tether.
Chainalysis Know Your Transaction (KYT) forToken Issuers is a real-time anti-money laundering (AML) compliance solutionthat monitors a token from issuance to redemption.
Jonathan Levin, co-founder of Chainalysissaid: “Stablecoins like Tether, which peg their value to other assets, weredeveloped to appeal to mainstream audiences who are wary of the pricevolatility associated with many traditional cryptocurrencies. By putting properAML transaction monitoring in place, Tether is demonstrating its commitment totransparency and regulatory compliance, further building trust among itsgrowing user base.”
By integrating with Chainalysis KYT through anAPI, token issuers can quickly start monitoring large volumes of activity andidentify high-risk transactions on an ongoing basis. This user interface willalso let them to quickly understand the risk profile of each token holder withup-to-date data, filtering them by level of risk exposure to identify thosethat 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.”
