Ethereum Classic Labs, the development team behind ETC blockchain and cryptocurrency, recently beefed up its security measures with Chainalysis Know-Your-Transaction (KYT) tool. In addition to tracking suspicious transactions, the new KYT tool will enable companies and projects running on ETC blockchain to stay compliant with both local and global regulators.
Ethereum Classic Labs partnered Chainalysis
Following the announcement on Medium, Ethereum Classic Labs reached a partnership agreement with the blockchain analytics company, Chainalysis. As a result, projects and start-ups running through the ETC blockchain will be able to integrate the new technology at a reduced rate. This will enable them to automate their compliance and reporting processes.
Ultimately, Ethereum Classic Labs said that the KYT technology will allow for immediate monitoring of large transactions involving their native cryptocurrency, Ethereum Classic (ETC) and other major cryptos. Additionally, the Chainalysis tool will enable them to detect high-risk transactions from sanctioned addresses, scams, and darknet marketplaces.
CRO at Chainalysis, Jason Bonds, commented on the need for cryptocurrency companies, especially those offering exchange services. To stay compliant with regulations, he explained that:
“Compliance is critical for many cryptocurrency businesses, particularly those offering some form of exchange, custody, or other money services. But cryptocurrency compliance is complex, and it’s often a barrier to entry for founders starting a cryptocurrency business.”
KYT tools are one of the necessary security technologies required by companies that facilitate transactions in digital currencies and other related products. Many regulators have encouraged the use of such technologies for companies to monitor and report on any suspicious activity on their platforms.
Earlier this year, Chainalysis reported that criminals were able to launder about $3 billion in Bitcoin through popular exchanges like Binance and Huobi. This clearly indicates the need for digital currency transaction tracking tools.