Bitfinex Integrates Know Your Transaction by Chainalysis

December 13, 2019

Blockchain analysis firms continue to gain more attention. In the case of Chainalysis, the company will now collaborate with Bitfinex to keep criminals at bay. It is crucial for any cryptocurrency exchange to ensure no illicit money streams pass through its order books.

Chainalysis Tool Helps out Bitfinex

That is often easier said than done, unless one has proper countermeasures in place. Bitfinex is seemingly stepping up its game in this particular department. The company has begun integrating a new compliance tool developed by blockchain analysis outfit Chainalysis. This tool is known as Know Your Transaction, and is designed to detect any and all suspicious transactions in real-time. It is not the first major cryptocurrency exchange to integrate this particular tool. Both Bittrex and Binance took very similar measures earlier this year. It has become more than apparent that cryptocurrency exchanges need to step up their compliance measures. Identifying illicit money streams and ensuring they cannot be utilized in any way is crucial to bring more legitimacy to cryptocurrency. The big question is how users will respond to having their transactions scrutinized even further due to these new tools. It is not unthinkable that a lot of users will look for alternative exchanges due to these new measures. Given the current regulatory pressure, it seems tools such as Know Your Transaction will become the norm in the industry sooner rather than later.