Marshall Islands Officially Make Crypto Their Sovereign National Currency

Avi Rosten
  • Their new cryptocurrency called the Sovereign (SOV) will take the place of the USD as the sole national currency
  • Designed by Israeli fintech company Neema, the new currency will be the legal tender for the Pacific nation

The first sole sovereign cryptocurrency has been signed into law today as the Marshall Islands - a sovereign state and UN member - has put in place a bill to make its national legal tender its own cryptocurrency.

Their new national cryptocurrency is called the Sovereign (SOV) and will be the official legal tender for businesses and the 53,000 citizens of the Pacific islands.

Breaking the news today, crypto trader and host on CNBC Africa - Ran Neuner - explained that the move for the tiny nation was significant because (in theory at least) it means that financial institutions such as banks and Visa will have to accept the SOV as it is now the legal tender of a sovereign nation:

According to a report from thenextweb in April, the cryptocurrency was designed by Israeli fintech company Neema - and the project was the idea of CEO Barak Ben-Ezer who sought out nations without their own national currency for crypto adoption. The Marshall Islands - although their own republic since 1982 - use the USD as their legal tender, but will now start to use (presumably in conjunction with the USD) the new SOV cryptocurrency that was today signed into law.

This new adoption - and its suggested ramifications for the banking world - are no doubt an interesting development for the space as the crypto-world pushes for broader institutional acceptance.

Chainalysis Launches Real-Time Suspicious Transaction Alerts for 15 Cryptocurrencies

Blockchain intelligence firm Chainalysis has introduced "suspicious cryptocurrency transaction alerts" in "Chainalysis Know Your Transaction (KYT)", its "real-time anti-money laundering (AML) compliance solution".

Chainalysis, which was founded in 2014 by Dr. Michael Gronager (the current Chief Executive Officer), Jan Moller (the current Chief Technology Officer), Jonathan Levin (the current Chief Operating Officer), is a company with two main products:

  • Chainalysis Reactor -- its investigation software suite
  • Chainalysis Kknow Your Transaction (KYT) -- its compliance software suite

Chainalysis KYT supports "real-time transaction screening"; "case management capabilities"; "enhanced due diligence"; and "KYT for token issuers".

In a press release published on its blog on Thursday (August 22), Chainalysis says that Chainalysis KYT's alerts are "designed to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources."

John Dempsey, VP Product, Chainalysis, had this to say:

As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices.

According to Chainalysis, this new feature results in alerts being generated "whenever a transfer involves a risky counterparty and crosses a value threshold." Alert levels (Severe, High, Medium, and Low) are "based on factors such as category, service, direct versus indirect exposure, direction of funds, and amount," and are available for all 15 cryptocurrencies that Chainalysis supports (including BTC, ETH, BCH, LTC, USDT, and DAI).

Michael Breu, Gemini's Chief Compliance Officer, also chose to comment on this announcement:

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.

 

Featured Image Credit: Photo via Pixabay.com