Fraud, illicit activities, and deceit are some of the shared concerns in blockchain community and the worldwide regulators. In fact, a number of countries (like South Korea and China) have banned crypto-trading primarily due to the growing number of frauds. Regulators had concerns as not every transaction contained the client details, and many were done anonymously.

However, a new tool has been introduced by cryptocurrency investigation company, Chainalysis. Named as “Know Your Transaction (KYT)”, the tool has been designed to help businesses track customers that may be involved in the illicit cryptocurrency-related activity.

With clients like the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and Europol, the company enjoys good repute and credibility, and experts believe that the tool has been tested, and will equally awesome.

While announcing the product, Chainalysis expressed their trust in blockchain and cryptocurrencies. Here’s a brief quote from their post.

“Blockchains create new ways for people to build trust among themselves and transact using cryptocurrencies.

Cryptocurrencies have, in turn, inspired people to reimagine the financial machinery that powers world commerce. People are collecting land in virtual realities, conducting real-time payments for computation services, and buying collectible cats on the internet. This is just the beginning of worldwide access to financial instruments.”

Experts believe that the company’s main goal is to get banks and financial institutions involved in the cryptocurrency market and create a world where financial institutions feel secure to offer dedicated products aimed at the digital currency market. Currently, banks avoid the cryptocurrency market due to the fear of money-laundering and illicit activities.

A company source told Bitcoin Magazine that – “All these regulated institutions want to participate in cryptocurrency transactions, but they need to understand with whom they are transacting and where their funds are originating. We’d solved these traditional compliance requirements in the fiat world.”

Chainalysis’ Know Your Transaction (KYT) tool provides a real-time feedback on all the transactions and offers detailed information via “transaction processing engines”. This enables exchanges to raise alerts and monitory a suspicious customer or activity.

Having been rigorously tested on a small group of customers, the tool has been found out to be bringing in “20X improvement in the speed of account reviews.” KYT will now be released worldwide, primarily targeted at cryptocurrency exchanges, banks, corporate lenders, law enforcement, and other institutional customers.

Initially, KYT will begin with tracking bitcoin cash for the law enforcement customers and the company is planning to add up to 10 cryptocurrencies by the end of 2018.

About Chainalysis:

Chainalysis was founded in 2014 by Oxford economist Jonathan Levin and Michael Granger, the former COO of (SF-based) Bitcoin exchange Kraken. The company employs over 75 people with offices in New York, Washington D.C. and Copenhagen. Recently, it landed approximately $16 million in “Series-A Funding” from VC firm Benchmark. Chainalysis rose to fame after it was selected to investigate the world’s biggest cryptocurrency theft in Japan, where $500 million worth cryptocurrency disappeared overnight.

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