Chainalysis announces the launch of a new alert service that flags suspicious cryptocurrency transaction. The alarm service titled as Chainalysis’ Know Your Transaction (KYT) is currently only available to the top fifteen cryptocurrencies.
Chainalysis is a New-York based blockchain analysis company that was founded in 2014. According to the company’s official website, Chainalysis is backed by various venture capital (VC), firms like Benchmark and Accel. The company’s main objective seems to be providing investigation software to top global institutions.
KYT works real-time to prevent any money laundering by monitoring shady transactions. Currently, they can only be used to monitor fifteen cryptocurrencies, mainly stablecoins, ERC-20 tokens as well as Bitcoin, Litecoin, Ethereum, and few others.
According to the firm, the tool is developed to allow financial institutions to increase network security by taking quick action. The financial institution can use the service to monitor such shady users and transactions to uncover any illegal dealings or malicious actors.
The company’s vice president believed that every minute was important when it came to hacked funds and illegal dealings. Therefore he thought it necessary to invest in developing a real-time solution that kept track on crypto transactions while alerting the clients as necessary.
This tool is built directly on the user interface and application programming interface. This allows it to track as well as take action against crypto transaction as is seen fit. Moreover, it allows clients to reshape their risk parameters.
The basic function of KYT is to send alerts to users whenever a high-value transaction takes place or when a shady party is involved. The alert levels include low, medium, high, severe.
Chainalysis has been very active this year as it previously announced a partnership with LINE. LINE is Japan’s largest social networking company in Japan.
Other news about chainalysis covered by Cryptopolitan can be read here.