CryptoKitties developer deploys Chainalysis AML solution

Rick Steves

Chainalysis KYT flags risky and illicit activity in real-time, while Chainalysis Reactor enables deeper investigations into those transactions.

Dapper Labs, one of the largest blockchain-powered gaming companies (CryptoKitties and NBA Top Shot), has partnered with Chainalysis to obtain a clearer line of sight into the transactions occurring on their platform in order to establish a comprehensive compliance and regulatory management process.

Chainalysis is a leader in AML compliance with its KYT (Know Your Transaction) and Reactor solutions and the partnership comes in good time as the NFT ecosystem explodes, bringing further complexity to the fore.

Growing consumer access to cryptocurrency requires a careful examination of the funds being used to purchase NFTs and the use of a comprehensive compliance monitoring solution that can help detect and prevent NFT money laundering and market manipulation.

Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis, said: “Ultimately, our team at Chainalysis is preparing for a world where all types of value will flow on blockchains: art, gaming, business transactions, and other other uniquely engaging digital experiences.

“We are excited to partner with a market leader in bringing the world of entertainment onto the blockchain, and look forward to helping Dapper Labs scale its compliance processes as the company pioneers new consumer use cases”.

Dapper Labs will be leveraging both Chainalysis KYT and Chainalysis Reactor in order to manage a vast set of their current compliance needs.

Chainalysis KYT flags risky and illicit activity in real-time, while Chainalysis Reactor enables deeper investigations into those transactions.

Naeem Bawla, Associate Director of Compliance, Dapper Labs, commented: “NFTs are one of the most exciting spaces in cryptocurrency, but they will only be successful in the long-term if we can ensure a safe environment for our customers.”

Lana Schwartzman, Chief Compliance Officer, Dapper Labs, said: “We’re thrilled to partner with Chainalysis to keep potential bad actors off our platform, combat money laundering, and at the same time, stay on top of the quickly-evolving local and global regulatory and compliance space. We look forward to partnering with Chainalysis as we bring new digital engagement opportunities to market on the back of the success of NBA Top Shot and CryptoKitties.”

Chainalysis has recently acquired Excygent after collaborating with the firm to support government agencies in investigating several high-profile cyber cases.

Both firms, together as one, will aim to make the space transparent, with the right tools and the right talent. This is Chainalysis’s first acquisition and follows its $100 million Series E fundraise earlier this year.

The $100 million Series E financing was led by Coatue, bringing the firm’s valuation to $4.2 billion. The capital raise will be used to deepen its data advantage by covering more cryptocurrencies and focusing on emerging use cases like DeFi, and launching a Global Intelligence function to more quickly identify warning signs for potential threats and reduce time to response.

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<