Chainalysis, a blockchain investigations firm, has announced the appointment of a topmost executive from the U.S. anti-money-laundering agency to aid its blockchain patrons conform to the rigid, new-fangled global data-sharing requirements.
Chainalysis – Blockchain Analysis
The top executive, in person of Mike Mosier- former chief of strategic advancement and tactical development at the U.S. Financial Crimes Enforcement Network (FinCEN), has become a member of the company as the chief technical counsel. Mosier has expended years in numerous financial regulatory bodies which include working at the Office of Foreign Assets Control (OFAC), the National Security Council and the Department of Justice’s Money Laundering and Asset Recovery Section and of course, the U.S. Financial Crimes Enforcement Network (FinCEN).
Putting his experience in financial crime deterrence to use, the new chief technical counsel will primarily deal with authorized and methodological keys for the “travel rule” that is being enforced in the blockchain industry by the Financial Action Task Force (FATF). According to the regulatory body, FATF’s participant countries will need cryptocurrency exchanges and wallet sources to recognize both the source and receiver of tokens and deliver this data to one other along with each transmission.
Although this happens to be a normal condition for banks when they convey cash for customers, it brings about an overwhelming test for the cryptocurrency industry given the anonymous characteristic of wallet addresses. Regarding this, Chainalysis had cautioned in the course of the community consultation period that this obligation would force burdensome venture capital and tension on controlled firms, possibly knocking a couple of them out of business and propelling action into the shadows. On the need to equalize the benefits and risks of crypto, Mosier revealed that there is a truly important instant, and also that there is a restriction resistant and financially comprehensive industry that also was tangled in the Dark Web and election intervention.
The Future Task
Chainalysis will continue connecting with the cryptocurrency community, as it has been doing for a while now, to work out methodological solutions for executing the travel rule, although no specific skill has been agreed on so far, according to Mosier. He added that there have been a couple of ideas, but he thinks it’s a bit too early to come up with an idea that will actually perform well. He also opined that taking into consideration how banks laboured to put into effect, the novel travel rule and how they fixed that matter might turn out to be helpful.
Data Privacy Protection
The direction released by the Financial Action Task Force (FATF) offered some instances of prevailing technologies that the business could study to aid recognize beneficiaries of crypto transmissions and communicate this data. These technologies include: public and private keys, Transport Layer Security/Secure Sockets Layer (TLS/SSL) connections, X.509 certificates and APIs. Mosier mentioned that he will be in charge of the firm’s data privacy and product improvement, making sure that Chainalysis’ solutions for blockchain transaction monitoring will be well-matched with principles in areas other than the U.S. where the firm also has clients. Regarding his drive to work in the blockchain industry, Mosier revealed that after functioning in economic crime prevention, he has been contemplating at new areas of monetary monitoring.