KuCoin partners with Chainalysis
KuCoin will use Chainalysis Know-Your-Transaction (KYT) software to detect and prevent money laundering and illicit activity. and Chainalysis Reactor to conduct further investigations into suspicious activity.
“We hope to further strengthen our technical expansion into compliance with our cooperation with Chainalysis,” said KuCoin Global CEO Johnny Lyu. “Not only does it provide infrastructure to the blockchain ecosystem, but it also meets regulatory compliance requirements across different countries and regions.”
The KuCoin Exchange opened for cryptocurrency trading in September 2017. The exchange reportedly has over 5 million registered users from 200+ countries and regions. The exchange also claims that one out of every four crypto holders in the world has an account with KuCoin. According to Alexa traffic ranking, KuCoin’s monthly unique visit ranks among the top 5 crypto exchanges globally.
The company successfully completed a series A funding round in November 2018, raising US$20 million from IDG Capital, Matrix Partners, and NEO Global Capital. The company operates out of Seychelles.
KuCoin offers several different products and services, including spot trading, futures trading, staking, and a white-labeled version of their exchange. The exchange was the original focus of the KuCoin team and is sold as having an efficient matching engine, a large range of trading pairs, and high liquidity. Up to 10x leverage is offered to traders on the spot exchange.
The futures trading platform in the KuCoin group is called KuMex, and was launched in July 2019. The futures platform is touted as having a more robust index than competing derivative exchanges, which is comprised of six of the most liquid spot exchanges: Bittrex, Bitstamp, Gemini, Liquid, Coinbase, and Kraken. KuMex offers a BTC perpetual and quarterly derivative contract, which can be traded with up to 100x leverage.
Pool-X, otherwise known as KuCoin staking, is the platform used to provide staking services to KuCoin customers. The platform supports a variety of different stakable cryptocurrencies and is said to offer higher yields than most competing exchanges. Users can stake their crypto through either the fixed or flexible option, the former returning a higher yield.
The last product in the KuCoin group is KuCloud, which is a white-labeled version of the KuCoin and KuMex platforms. This allows companies to utilize the exchange architecture already developed by KuCoin, as well as to access the parent platform’s liquidity. The company claims that an exchange utilizing their technology can be launched within 72 hours.
The company’s new partner, Chainalysis, is a blockchain analysis company providing data and analysis to exchanges, financial institutions, and government agencies across 40 countries.
The company offers investigation and compliance tools and education so that their customers can engage confidently with cryptocurrency. The company completed a US$36 million series B funding round in April 2019, lead by venture capital giant Accel. To date, the company has raised a total of US$53.6 million across a seed, series A, and series B round.
Chainalysis has three main products: know-your-transaction (KYT), Reactor, and Kryptos. KuCoin will use both the KYT and Reactor software to monitor and conduct investigations into suspicious activity.
KYT combines blockchain intelligence, an easy-to-use interface, and a real-time API to reduce manual workflows while helping cryptocurrency businesses comply with local and global regulations. This enables compliance teams to monitor large volumes of cryptocurrency activity and identify high-risk transactions on a continuous basis by applying global AML standards to each transaction across all users within an organization’s user base.
Reactor is “investigation software” that connects cryptocurrency transactions to real-world entities, enabling users to combat criminal activity on the blockchain. It helps identify and stop bad actors using cryptocurrencies for illicit activities such as fraud, extortion, and money laundering.
The software allows for sophisticated investigation into the movement of crypto funds, such as searching based on an identifier, tracking of funds between wallets, and monitoring of addresses for movement of funds.
The last product, Kryptos, is designed to allow customers to vet new opportunities and navigate risks in the cryptocurrency industry. The software provides profiles of cryptocurrency businesses based on KYC details and the blockchain data.
All services offered by Chainalysis are underpinned by a data set that the company has acquired over several years. Over 2,000 unique services that together control hundreds of millions of cryptocurrency addresses accounting for over US$1 trillion of value transferred have been identified. The company adds over 100 new services every week to this database and claims that a third of these are scams, darknet markets, and other illicit services.
OhNoCrypto
via https://www.ohnocrypto.com
Bryce Galbraith, Khareem Sudlow