Specifically, the collaboration will reportedly enable the harnessing process of techs developed by Chainalysis – particularly “the Chainalysis Reactor” and “the Chainalysis KYT” – respectively to carry out thorough investigative research and act a supervising tool for potential illicit activities, in alignment with the standard KYC regulations, as revealed by Ray Youssef – Paxful co-founder.
“Through working with Paxful, Chainalysis is evolving its policy and will evaluate P2P exchanges on a case-by-case basis before labeling them as risky, just as it does for other cryptocurrency exchanges. Paxful is setting a new standard for compliance at P2P exchanges, Chainalysis is changing its policy based on the strides P2P exchanges like Paxful have made.” He further remarked.
Bitcoin – being one of the first crypto asset created worldwide – was formed with an anonymous nature, and throughout the approximate 11 years of development of the sector, data privacy has increasingly been focused on.
The Paxful marketplace has thus been established to serve “honest users”, and KYC and KYT will provide the necessary level of security to maintain the level of trust from customers into the platform, along with boosting trading activities, per Youssef.