Anti-money laundering software maker, Chainalysis Inc is expanding its operations to cover more cryptocurrencies as the demand for more secure transactions rises. Jonathan Levin, the firm’s co-founder in a recent telephone interview says they are set to start detecting money laundering and criminal activities in Bitcoin Cash.
The firm has spent months perfecting Bitcoin-tracing software and helped investigators track the funds Mt. Gox lost in 2014 after a hack that resulted in the loss of bitcoins valued hundreds of millions of dollars. The software helped the investigators make at least one arrest that of Michael Gronager, the Chief Executive Officer.
The anti-money laundering software company plans to support investigations and also monitor up to ten more crypto coins by the end of the year. Levin says customers want to see them cover more cryptocurrencies and are increasingly interested in tracing Ripple, Litecoin, Ether, Ethereum classic and many others.
“We think about our brand as being the trust provider between the people, the companies and the government in transacting on the blockchain,”
“Those are critical components to enable billions of people to transact. We want to open up the doors to mainstream adoption.”
Due to decentralization and anonymity of most cryptocurrencies, their transactions have proved a challenge to track. Tokens owners are usually represented by addresses – which are basically letters and numbers. Any user can have multiple addresses. Newer crypto coins are coming up with extra privacy features that further hide the identity of users.
However, the company is yet to see any demand for tracing Monero, a privacy-conscious coin. Levin says that building a tool that can track such a coin is possible. The software firm has also announced a new product that will help crypto exchanges flag high risk-transactions as they occur. The tool will compile customer profiles and whenever a suspicious move occurs they can review all the transactions conducted by the customer.
Is it a good thing that Chainalysis has moved to cover more cryptocurrencies? Will this move boost mainstream adoption of cryptocurrencies? Let us know in the comment section below.