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Chainalysis to Release USDT-focused Global Compliance Solution For Tracking Stablecoins

By Emily Rys | February 13, 2020

Chainalysis is reportedly set to release a newly-developed international compliance feature for Tether (USDT), which now enables it to single out “high risk” transactions conducted on the network. 

Specifically, the new solution utilize the tech from Chainalysis’ Know Your Transaction (KYT) suite – a tool that supports token issuers in tracking how their digital assets are doing. 

Compliance level will receive the assistance from the real-time Anti-Money Laundering (AML) tool, by providing supervision from the first to the last step (issuance-redemption) of the whole chain of a token’s life cycle. 

KYT comes with an API and a user interface features for detecting and supervising dubious activities, along with a wide array of filtering tools. 

Regulators throughout the globe have recently agreed that a closer examination should be placed on stablecoins. In October last year, Kenneth Blanco – head of Financial Crimes Enforcement Network (FinCEN) – confirmed that no exemption will be provided to stablecoins, regarding its required compliance with AML laws. 

Stablecoin issuers, along with crypto exchange firms, will be legally perceived as money services businesses (MSB), and need to abide by the regulatory standards set out for firms of that class. 

Despite the straightforward nature of exchange-focused compliance, stablecoin issuers will possibly have to deal with a more troublesome challenge of tracking network activity.

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