Cryptocurrency exchange Bitfinex has integrated a compliance tool from blockchain analysis firm Chainalysis to monitor cryptocurrency transactions in “real-time.”
Announced Thursday, Chainalysis said its “Know Your Transaction (KYT)” compliance software will help Bitfinex monitor large volumes of cryptocurrency activity and identify high-risk transactions on a continuous basis. This, in turn, will help the exchange to focus on the most urgent activity and enforce compliance policies.
Chainalysis’ solution “aligned with what we were seeking to keep bad actors off of our platform, while protecting the privacy of our users," said Peter Warrack, chief compliance officer of Bitfinex. He added that the solution “does not share information identifying users, which is kept strictly in-house.”
Chainalysis currently tracks 41 cryptocurrencies and stablecoins, including bitcoin (BTC), ether (ETH), bitcoin cash (BCH), Tether (USDT), Maker and Dai. It is expected to add support for XRP and several other coins in the near future.
Bitfinex joins Binance and Bittrex exchanges who recently began using Chainalysis’ KYT software to monitor suspicious transactions. Founded in 2014, Chainalysis provides compliance tools to banks, businesses, and governments. Its top clients include Barclays, the U.S. Securities and Exchange Commission, and EU law enforcement agency Europol, among others.
Last month, Chainalysis cut its workforce by about 20% (laying off 39 employees) to be on the "path to profitability."