BNY Mellon Partners Chainalysis To Improve Crypto-related Regulatory Compliance
By RTTNews Staff Writer | Published: 2/25/2022 9:10 AM ET
The Bank of New York Mellon Corp. or BNY Mellon, has teamed up with New York-based blockchain analytics firm Chainalysis to use their product suite for improving regulatory compliance and security standards as part of its strategy to develop cryptocurrency services for its customers.
BNY Mellon will be the first Global Systemically Important Bank that is planning to utilize Chainalysis’s compliance software as part of their risk management program.
This move comes just ahead of the bank’s plan to build the industry’s first multi-asset digital custody and administration platform for traditional and digital assets, which was announced a year ago. It is reportedly set to the platform later this year.
In February 2021, BNY Mellon had announced the formation of a new enterprise Digital Assets unit to accelerate the development of solutions and capabilities to help clients address growing and evolving needs related to the growth of digital assets, including cryptocurrencies such as Bitcoin.
BNY Mellon plans to integrate the full Chainalysis compliance software suite to assess broader cryptocurrency trends and granular activity in support of its compliance and due diligence practices.
Chainalysis’s comprehensive risk management software suite includes Chainalysis KYT (Know Your Transaction), Reactor, and Kryptos. Chainalysis KYT performs continuous, real-time transaction monitoring for all cryptocurrency assets to detect patterns of high-risk activity.
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 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.
Meanwhile, Chainalysis Kryptos offers high-level insight into cryptocurrency services including transaction volumes, counterparties, and benchmarking, so that financial institutions can develop effective compliance frameworks.
The partnership will enable BNY Mellon to ensure that digital assets are securely and compliantly transferred by adhering to security and regulatory anti-money laundering (AML) best practices.
Meanwhile, Chainalysis also offers cryptocurrency investigation and compliance solutions to law enforcement agencies, regulators, and businesses to fight illicit cryptocurrency activity.
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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.
Article reposted on Markethive by Jeffrey Sloe