Blockchain analysis firm Chainalysis and securities lending exchange for cryptoasset Lendingblock have recently announced a new partnership formed in a bid to prepare for upcoming regulatory enforcement from the Financial Action Task Force (FATF).
The FATF, the global anti-money laundering (AML) watchdog, has announced last year it was set to release new regulatory guidelines for cryptocurrency-related businesses in the summer of this year.
The watchdog is an inter-governmental body that sets global standards relating to AML and combating the financing of terrorism (CFT), for over 180 countries within its oversight. By partnering with Chainalysis, Lendingblock is looking to implement new AML technology to be prepared for the guidelines.
According to a press release shared with CryptoGlobe, the trading platform noted it’s committed to “meeting the stringent and comprehensive compliance requirements” set by its regulator, the Gibraltar Financial Services Commission, and by the FATF.
Using Chainlysis’ KYT (Know Your Transaction) solution, which is already being used by leading cryptocurrency exchange Binance and over 100 other cryptocurrency businesses, the firm is able to access real-time data regarding incoming and outgoing transactions to detect potentially suspicious activity.
Jonathan Levin, the co-founder and COO of Chainalysis, stated:
We are beginning to see the cryptocurrency community preparing for an influx of enforcement actions and regulatory guidance over the coming months. Exchanges like Lendingblock are positioning themselves ahead of the curve by putting these procedures in place now to support clients globally.
Steve Swain, the CEO of Lendingblock, added that “it’s important to create a secure and transparent lending exchange” that doesn’t just med its regulators’ needs, but that’s also trusted by its institutional clients.