Fireblocks and Chainalysis have announced a partnership in order to help financial institutions and crypto businesses transact digital assets in a way that’s both secure and compliant with anti-money laundering ( AML ) procedures.
Fireblocks Integrates With Chainalysis
According to a recent press release, Fireblocks plans to partner up with Chainalysis to make sure that financial entities and crypto companies can transfer digital assets in a way that’s both secure and compliant. The blockchain analysis company Chainalysis, plans to leverage its resources and help Fireblocks streamline the compliance space, specifically in anti-money laundering ( AML ). With Fireblocks being an “enterprise grade” platform for storing and moving digital currencies, the firm plans to use “Know Your Transaction” ( KYT ) services from Chainalysis to oversee cryptocurrency transactions in real-time. In doing so, Fireblocks is enhancing the oversight process, and offering their clients a new standard when it comes to security and compliance.
The Chief Revenue Officer at Chainalysis stated that:
“Both security and compliance are integral to building trust in the cryptocurrency industry. By bundling product offerings with our integration partners through the Chainalysis Partner Program, we are ensuring our customers adhere to security and AML best practices, ultimately making cryptocurrency more accessible for all.”
The Importance To Fireblocks
Fireblocks currently works with various digital asset companies around the globe. Most of these clients include banks, liquidity providers, crypto exchanges, custodians, lending platforms, and many others. These companies will now have the ability to take advantage of Chainalysis software through the Fireblocks platform and API. According to the Fireblocks website, some of the top companies they work with include Genesis, Galaxy Digital, Celsius Network, Nexo Finance, and others. These companies will now have the opportunity to leverage Chainalysis and receive reports that they can essentially share with regulatory authorities if need be. According to the press release, the integrated software will give Fireblocks users the ability to “send and receive AML approved funds, customize transaction policies based on assigned risk scores, and automatically log AML transaction reports.”
According to a report by Chainalysis, the company collected data in 2019 around illicit activities. Chainalysis mentions that cryptocurrency exchanges continue to be the hot spot for laundering. They found that nearly $2.8 billion BTC in 2019 was going from criminal establishments to exchanges. The research firm blames a lot of these activities around the lack of KYC protocols. They further believe that regulators need to understand these consumer protection issues, and apply further framework that addresses AML regulation. Fireblocks now joins a list of over 270 companies that rely on Chainalysis for their advanced solutions to mitigate illicit activities in the digital asset space.
Fireblocks infrastructure allows its clients to move funds between exchanges, wallets, and other counterparties. Among 26+ exchanges, users no longer have to worry about copying and pasting deposit addresses or manually re-entering passwords. Fireblocks gives users the ability to keep digital assets “readily available” through their MPC – based hot vaults. This way the end user gets the best of both worlds, convenience like a hot wallet and security like a cold wallet.
Chainalysis is a blockchain analysis company that helps users understand activities on the blockchain. Through their investigation and compliance software sets, they offer transparency to governments, banks, and businesses. Chainalysis believes the cryptocurrency industry will continue to grow if greater trust and transparency is injected into the market. The company operates across 40 different countries and is backed by top investors such as Benchmark.