U.S.-based crypto trading platform Robinhood has teamed up with New York-based blockchain analytics firm Chainalysis to use their data and tools for improving regulatory compliance and security standards for its customers to trade cryptocurrency safely.
This move comes just ahead of the anticipated launch of Robinhood crypto wallets which currently has a waitlist of more than 1.6 million. The crypto wallet is expected to be rolled out in early 2022.
The crypto wallets will provide customers the ability to deposit and withdraw a wide variety of cryptocurrencies, including bitcoin, Ethereum, Dogecoin, and more, and connect Robinhood Crypto customers to the blockchain.
Robinhood found a need to improve regulatory compliance standards due to the massive growth in crypto trading and higher demand for exposure to this asset class than ever before.
Chainalysis’s comprehensive data set and real-time monitoring and investigative solutions help compliance teams build trust, keep accounts safe, and expand their cryptocurrency offerings. Chainalysis works closely with regulators and law enforcement to develop industry best practices.
Robinhood is set to adopt Chainalysis KYT (Know Your Transaction) and Chainalysis Reactor, software solutions that will use Chainalysis data to manage a vast set of compliance needs. Chainalysis KYT will help flag risky and illicit transactions in real-time, while Chainalysis Reactor will enable deeper due diligence into potential suspicious activity.
The compliance software raises live alerts on transactions involved in suspicious activity by using a combination of pattern recognition, proprietary algorithms, and open source references.
Robinhood can also access the same blockchain data government agencies use and easily integrate it into their systems to reduce manual workflows with these tools and a simple API integration.
Further, Robinhood will leverage Chainalysis certification programs to ensure their teams are well versed in the knowledge and skills required to operate a compliant cryptocurrency business.
The partnership will enable Robinhood to ensure that digital assets are securely and compliantly transferred by adhering to security and regulatory anti-money laundering (AML) best practices.
Chainalysis also offers cryptocurrency investigation and compliance solutions to law enforcement agencies, regulators, and businesses to fight illicit cryptocurrency activity.
Business News
Robinhood Partners Chainalysis To Improve Regulatory Compliance
2021-12-14 14:35:45
