Chainalysis offers a blockchain tracking tool to financial organizations and governments to power compliance such as money laundering investigations.
To realize their full potential, cryptocurrencies unquestionably require a high trust and transparency level. Chainalysis’s objective is to build more transparent Anti-Money Laundering (AML) regulations for the crypto business to achieve these fundamentals. But, who uses Chainanalysis?
When two rogue FBI agents stole Bitcoin (BTC) while investigating the Silk Road darknet market in 2015, Chainalysis made headlines. Chainalysis is a data platform based on blockchain technology that helps government and business sectors detect and prevent the illegal usage of cryptocurrencies. It was founded in 2014 by co-founders Jonathan Levin and Michael Gronager.
The New York-based corporation, which has a presence in 60 countries, provides software services, data management and research to government agencies, exchanges, financial institutions, insurance and cybersecurity firms.
Chainalysis’s data is utilized to power compliance, investigative and market intelligence tools that have helped solve some of the world’s most high-profile criminal cases and securely expand consumer access to virtual assets.
The transformative technology behind cryptocurrencies has opened up new markets globally but is this innovation trustable? There is where Chainalysis plays a more significant role by establishing audit practices and compliance controls so that the crypto market can sustain growth.
This article discusses who uses Chainalysis and will answer various questions: How good is Chainalysis? How does Chainalysis work? How much does a Chainalysis license cost? How to use Chainalysis to monitor crypto?
Chainalysis has five different types of products that help in monitoring crypto assets. These are Chainalysis Business Data, Chainalysis KYT, Chainalysis Kryptos, Chainalysis Market Intel and Chainalysis Reactor.
Chainalysis Business Data
Chainalysis Business Data gives crypto companies an extra layer of customer intelligence, allowing them to understand their customers before and after leaving their platforms, customize product offerings and enhance customer experience.
Furthermore, it allows companies to find the most avenues impacting the business and making data-driven decisions. Data is updated on a regular basis to ensure that relevant adjustments are made in response to the changing ecosystem.
A simple data warehouse integration allows you to augment current information to gain deeper insights or execute queries to build custom Chainalysis reports.
Chainalysis KYT, or Know Your Transaction, enterprises reduce manual operations, adhere to local and international norms and safely interact with decentralized exchanges (DEXs) merchant services and nonfungible tokens (NFTs) platforms.
For all crypto holdings, Chainalysis KYT undertakes continuous transaction monitoring which can be used to detect high-risk activity patterns. Moreover, deposits from hackers can be frozen while Ethereum accounts and all the addresses controlled by an entity can be screened for all criminal activities.
In addition, you can set up real-time notifications based on your company’s AML rules to assist money laundering officers with crypto compliance.
The industry’s most trusted blockchain data is utilized to offer crypto organizations in-depth on-chain metrics by Chainalysis Kryptos. This tool can evaluate the behavior of over 6500 services like Kraken.com or Gemini.com, allowing you to make informed judgments regarding the cryptocurrency firms you interact with.
The risk exposure of crypto services providers to darknets and sanctioned jurisdictions can be assessed using the Chainalysis Kryptos crypto monitoring tool.
Chainalysis Market Intel
Chainalysis Market Intel takes advantage of the blockchain’s transparency to give real-time data and unique insights for cryptocurrency investing and research decisions.
Chainalysis’s proprietary dataset, which it has been steadily creating since 2014 by tracking the crypto activity of hundreds of firms and linking it to real-world entities, is the foundation of Market Intel measurements. With this tool, every labeled entity has auditable proof, giving you a comprehensive perspective of the whole crypto environment.
Reactor is research software that links cryptocurrency transactions to real-world entities. Chainalysis Reactor examines criminal and legal behavior such as the flow of stolen funds, NFT transactions and flash loans. So, how do you analyze blockchain using Chainalysis?
Reactor searches using identifiers to determine who maintains the wallet by entering a crypto address and automatically scanning it through thousands of social media forums and darknet sites.
When the entity makes a new transaction, Chainalysis sends a signal which allows you to visualize cryptocurrencies through an intuitive interface and search and monitor them. Additionally, investigators can utilize automated pathfinding to start an investigation, share graphs directly, download raw data for a complete record of their findings or set a “watch” to monitor future transactions.
Chainalysis license costs somewhere between $799 and $999 for virtual and in-person training, respectively.
There are various Chainalysis certification programs like Cryptocurrency Fundamentals, Chainalysis Reactor and Chainalysis KYT. The Chainalysis Cryptocurrencies Fundamentals Certification is for people who are just getting started with the cryptocurrency industry.
The Chainalysis Reactor Certification (CRC) credential equips practitioners with the knowledge and abilities needed to analyze and trace Bitcoin transactions. The Chainalysis KYT Certification certificate gives practitioners the knowledge and skills to use Chainalysis KYT to implement their own compliance philosophy and select appropriate compliance workflows.
The Chainalysis Investigation Specialist Certification (CISC) credential delivers advanced case studies and investigative workflows on obfuscation tactics and technology to Reactor’s “power users” who have obtained CRC. This two-day workshop expands on CRC methodologies and active knowledge gained from three months of daily Reactor use.
The in-person CRC training event costs $999 per person. It includes two days of on-site training, catered meals, personalized training materials, exam administration and a happy hour for attendees. The virtual CRC training event costs $799 per person and includes customized training materials, two days of virtual webcam-based training and exam administration.
Crypto businesses can implement Chainalysis software or train their staff using the CRC, CISC or KYT certification programs.
The cryptocurrency sector is ready to cooperate with authorities to build new and more efficient regulatory frameworks, given the far-reaching consequences of cryptocurrency regulation and the breakneck pace of innovation in this space.
The organizations that want to achieve security and compliance for crypto businesses can adopt Chainalysis cryptocurrency investigation software and get their employees qualified with the CRC, CISC or KYT certifications.
Cryptocurrency-compliant software will help DEXs and decentralized finance (DeFi) organizations understand and comply with local regulations. Chainalysis investigation and compliance professionals can assist your teams in navigating even the most complex investigations and developing a robust compliance program.
Both Coinbase and Binance use Chainalysis software to monitor crypto transactions and comply with AML regulations.
Chainalysis assists Coinbase with AML enforcement. Coinbase has emerged as a crypto asset kingmaker for investors thanks to its regulatory compliance, robust security, ease of use, and investing focus.
Binance partnered with Chainalysis to establish a core compliance program to go into the next expansion phase with a blockchain monitoring solution. With Chainalysis software Binance can comply with AML regulations. Companies like Binance that support cryptocurrency will find it easier to open bank accounts.