The cryptocurrency industry is a complicated landscape that’s full of potential
Mixers, hosted wallets, p2p exchanges—the cryptocurrency ecosystem can be overwhelming for those unfamiliar with it, and poor visibility into this activity makes financial institutions feel disconnected from the space.
But banks already have exposure to cryptocurrency activity through their customers, and many are missing a golden opportunity to grow with cryptocurrency businesses if they don’t take a step forward.
In fact, financial institutions already believe in the industry’s potential.
However, they’re held back by uncertainty around their ability to detect and prevent illicit cryptocurrency activity and comply with regulations.
That’s where we come in.
A new way to understand cryptocurrency
Meet Chainalysis Kryptos, the reference data standard for the cryptocurrency industry that allows financial services institutions to navigate opportunities and risks.
This new offering, announced today, provides the most complete profiles of cryptocurrency businesses by combining KYC (Know Your Customer) business details with the world’s most trusted blockchain data set, allowing financial institutions to identify where and how cryptocurrency businesses interact with their organizations.
Through this cryptocurrency industry navigator, financial institutions can identify both exposure to suspicious activity and growth opportunities across previously unfamiliar territory.
Chainalysis Kryptos provides a 12-month view of blockchain activity across the top cryptocurrency exchanges (by volume), along with contextual data like country of operation, cryptocurrency assets supported, and counterparties. Identifying which exchanges have adopted effective compliance programs helps financial institutions make informed decisions about who to do business with.
Build comprehensive profiles and AML frameworks
Let’s say a financial institution wants to understand their exposure to cryptocurrency. Chainalysis Kryptos allows them to first become familiar with who is who in the cryptocurrency space. They can export this information as aggregated data in a CSV file and run it through their internal transaction monitoring systems and risk models to surface their exposure and dig deeper.
Then let’s say that same financial institution is considering providing automated clearing house (ACH) and wire cash management services to a cryptocurrency exchange. The financial institution will need to thoroughly evaluate several aspects of the exchange, including its business model, jurisdictions in which it operates, whether it offers fiat and cryptocurrency trades, and most importantly, whether it has AML/KYC programs in place.
Understanding the ins and outs of how cryptocurrency is exchanged gives financial institutions the power to protect themselves from risk while growing their business. Institutions that future-proof their transaction monitoring for the latest and most complex cases will be able to take advantage of growth opportunities in these new markets.
Transparency and trust
Because Chainalysis Kryptos relies on the same data standard used by top regulators and law enforcement agencies, financial institutions can more easily streamline the development of their comprehensive onboarding programs for the cryptocurrency industry. We believe this ties together our vision of providing transparency to the entire cryptocurrency ecosystem—governments, cryptocurrency businesses, and financial institutions—to build trust in blockchains.
Learn more about Chainalysis Kryptos, or get in touch.