Blockchain firm Chainalysis has revealed the deployment of a new alert feature, KYT, which detects suspicious cryptocurrency activities.
The New York-based company launched a Know Your Transaction (KYT) tool to serve as a real-time anti-money laundering compliant solution which monitors transactions for top cryptocurrencies.
The KYT is available for the 15 top cryptocurrencies, and it includes Bitcoin (BTC), Litecoin (LTC), Ether (ETH, Bitcoin Cash (BCH), Maker (MKR), Tether (USDT), ERC-20 tokens, Dai and other stable coins.
“Chainalysis KYT (Know Your Transaction) recently launched Alerts in beta to detect as much high risk cryptocurrency activity as possible with fewer false positives. Today, we’re excited to announce that Alerts is out of beta and available to all Chainalysis customers.”
Chainalysis KYT alerts are designed to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources.”-read the company’s announcement.
Regarding the new KYT alert system, the Vice president of product at Chainalysis, John Dempsey, made the following statement:
“Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”
The new feature is directly integrated into the user interface and API which allows him to track, examine and take necessary actions if he should encounter high-risk crypto transactions. The Know Your Transaction (KYT) software can be customized according to risk parameters which are in line with their business policies.
“Chainalysis is constantly monitoring the blockchain and sends Alerts through KYT whenever any high risk activity is detected. This ensures compliance teams won’t miss anything, even if the high risk activity is detected after the time of the transaction.”
The KYT tools alert the user each time there is a transferred amount above a certain limit and whenever a crypto transaction could involve a risky counterparty. The alert levels can be set to low, medium, high and severe.
Chainalysis aims to meet all the guidelines of FATF (Financial Action Task Force), an intergovernmental organization which develops anti-money laundering in order to prevent terrorism financing, so that it can mitigate illegal crypto activities.
Featured image: Bitcoin Magazine