Digital asset storage and transaction firm Fireblocks will start tracking cryptocurrency transactions to help enterprise clients align with anti-money laundering (AML) best practices.
Announced Monday, the Fidelity-backed company is integrating with a tracing tool from crypto forensics firm Chainalysis to ensure crypto assets transferred to or from the platform are not in conflict with AML regulations.
Fireblock’s platform will leverage Chainalysis’ Know Your Transaction (KYT) product to monitor cryptos passing through its services in real time. KYT enables both institutional and retail clients to identify high-risk transactions by monitoring large volumes of crypto-related activity.
The system will “automatically log AML transaction reports to share with regulatory authorities,” Chainalysis said.
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Chainalysis provides solutions that allow for the tracking of digital assets across multiple blockchains. It recently added tracing support for the privacy coins zcash and dash, claiming it could trace 99% of transactions related to the two cryptocurrencies.
“Both security and compliance are integral to building trust in the cryptocurrency industry,” according to Jason Bonds, chief revenue officer at Chainalysis. “By bundling product offerings with our integration partners through the Chainalysis Partner Program, we are ensuring our customers adhere to security and AML best practices.”
Israel-based Fireblocks passed an audit from professional services firm EY in December demonstrating its compliance with industry data security standards.