Many efforts are being put in place to ensure greater security within the cryptocurrency industry by both firms within the industry itself as well as outside parties. This has come as a result of the various security threats that have occurred in recent times such as hacks, theft and the use of crypto for illegal activities. 


One of the newest efforts in this regard was done by Chainalysis, a blockchain analytics firm that has launched a new alert system for suspicious transactions across 15 major cryptocurrencies. This was announced on August 22, 2019, and according to the official blog post, the company stated that its Know Your Transaction tool works in real-time in order to provide compliance with anti-money laundering measures and will offer compatibility with many crypto assets. 

Suspicious Transactions Being Tracked 

This new tool is tailored towards cryptocurrency exchanges and other financial institutions to help mitigate the various regulatory risk and has already seen praise from those within the industry. 

“As a New York Trust company we are required to monitor transactions on and off our platform. […] Tools like KYT alerts, which provide real time and ongoing blockchain analysis, coupled with Gemini’s own compliance policies, help us meet our regulatory obligations,” said Michael Breu, chief compliance officer at Gemini. 

The company’s Know Your Transaction service has already included real-time transaction monitoring particularly for large volumes of cryptocurrency as a means to identify high-risk behavior. Now, if a transfer crosses a certain threshold in terms of volume or includes a counterparty that is considered high risk, an alert is automatically generated. 

The alerts work by categorizing various transactions as low-risk, medium risk or high risk depending on category, service, direct vs indirect exposure, amount and so on. For now, the service supports major tokens such as bitcoin, bitcoin cash, and litecoin as well as ERC-20 tokens such as DAI and maker.

“As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices. […] Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies,” said Chainalysis product vice president John Dempsey. 

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