New York-based bank BNY Mellon has announced a partnership with analytics firm Chainalysis to track illegal cryptocurrency transactions.
As part of the collaboration, BNY Mellon will use Chainalysis’s Know Your Transaction (KYT) solution to monitor crypto transactions for illegal activities and determine their level of risk. The bank will also implement Reactor and Kryptos tools to analyze blockchains and track open transactions with anonymous cryptocurrencies. If the Chainalysis software detects that cryptocurrencies are being transferred to a wallet address associated with illegal activity, it will block the transaction.
Caroline Butler, Head of Asset Custody at BNY Mellon, believes that there needs to be transparency and trust when dealing with the digital asset market. Therefore, BNY Mellon is ready to partner with Chainalysis and other leading fintech companies to expand its capabilities in the cryptocurrency industry. Despite criticism from users who are concerned about maintaining their anonymity, the ability to track suspicious transactions with cryptocurrencies will accelerate the introduction of digital assets into traditional finance, Butler explained.
“Chainalysis has always believed that banks and financial institutions are critical to the success of the cryptocurrency industry,” added Chainalysis co-founder Jonathan Levin.
Bank BNY Mellon became active in the crypto-currency direction last year. In February 2021, he opened a digital asset division and announced the development of a platform for the transfer, storage and issuance of cryptocurrencies. At the beginning of the year, the bank’s management also urged US agencies to clarify the rules for regulating cryptocurrencies as soon as possible, so that it would be easier for banks to work with this industry.
Source: Bits
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