Bittrex to Use Chainalysis Tool to Identify High-Risk Transactions

Cryptocurrency exchange Bittrex is incorporating Chainalysis’ know your transaction tool to spot high-risk transactions.

Cryptocurrency exchange Bittrex is incorporating Chainalysis know your transaction (KYT) tool to spot high-risk transactions.

Compliance standards

In a Sept. 26 press release, Chainalysis Inc. announced the deployment of its real-time transaction monitoring solution to the Seattle-based blockchain trading platform Bittrex.

In an attempt to meet “new and existing regulatory and compliance standards,” Bittrex incorporated Chainalysis KYT, a software solution that monitors high volumes of activity in the crypto space and helps identify high-risk transactions. Bittrex CEO Bill Shihara said:

“As our business continues to grow, having a thorough and reliable transaction monitoring system in place is crucial in demonstrating our commitment to compliance. […] Chainalysis KYT is an important tool in having an effective anti-money laundering program by helping us prevent, detect, and address unlawful behavior.”

Cointelegraph reported in August that the blockchain analytics firm launched alerts for suspicious transactions across 15 major cryptocurrencies. Today Chainalysis KYT monitors 25 cryptocurrencies and will continue to add additional cryptocurrencies in the nearby future.

FATF to strengthen control over crypto exchanges

The news follows the June announcement by the Financial Action Task Force’s (FATF), which said that cryptocurrency exchanges must assure digital currencies aren’t used in money laundering and related crimes and will have to comply with anti-money laundering and combating the financing of terrorism (CFT) procedures in the same way traditional institutions do.