Bittrex and Chainalysis have joined hands together to develop real-time transaction monitoring software called Chainalysis KYT (Know Your Transaction) to track the suspicious trading activity on Bittrex platform.
Chainalysis is blockchain compliance firm, and Bittrex is a leading crypto exchange based out of the United States.
Bittrex is a high volume crypto trading platform trusted by millions of traders worldwide who deal in exotic pairs of ETH, DAI, Bitcoin, Gemini, and many more. With Chainalysis KYT providing the shield over Bittrex transactions, the platform’s security quotient will go up.
This new development comes at a time when governments across the world are adopting increasingly stringent crypto regulations.
Bittrex and Chainalysis partnership will boost transparency
With Bittrex adopting Chainalysis KYT, the platform will impress regulators and authorities by creating a transparent transaction mechanism. This increased oversight will help identify the suspicious activity and plug in the security loopholes.
The Financial Action Task Force (FATF), in June 2019, issued guidelines to its thirty-seven member countries to install mechanisms that help track customer details related to every transaction, especially crypto transactions.
Bittrex already has complete compliance with the U.S. authorities. However, as per John Ruth, the Chief Compliance and Ethics Officer at Bittrex, the new collaboration with Chainalysis KYT will further make it more secure.
Chainalysis KYT has advance surveillance mechanisms
The Bittrex and Chainalysis system has a comprehensive built-in database that makes it easy to track darknet websites, suspicious criminal activities, etc. that puts Bittrex miles ahead of the competitors. Real-time updates help make quick decisions. This is something traditional financial institutions dream of!
Chainalysis’ chief security officer, Jonathan Levin, adds that their software adds another feather to Bittrex’s review process. By automating its surveillance mechanism, the exchange can fulfill compliance criteria, prioritize workflow, and increase their due diligence speed.
Compliance ‘sustainability’ can be achieved by high-volume exchanges only by automating their processes. The ability to identify suspicious transactions is crucial to maintain reputation. The software will flag such activities, but the real threat quotient will be determined by a Bittrex analyst who will report the suspicious activity as per threat perception.