Chainalysis, the blockchain analysis company, is working with Lendingblock, the institutional lending exchange for digital assets, to implement anti-money laundering technology and best practices in anticipation of global regulatory guidance from the Financial Action Task Force (FATF).
Lendingblock is committed to meeting the stringent and comprehensive compliance requirements set by its external regulator, the Gibraltar Financial Services Commission, and to adopting global best practices from the traditional capital markets space where regulation of digital assets is forthcoming.
By partnering with Chainalysis, Lendingblock is augmenting existing in-house KYC standards and enforcing due diligence processes, thus protecting its institutional client base including hedge funds, trading houses, exchanges, and market makers, while also supporting the progression of regulatory frameworks. By proactively establishing strong anti-money laundering (AML) and combating the financing of terrorism (CFT) procedures, companies like Lendingblock will be prepared for regulatory enforcement and stay ahead of the competition.
The FATF, the inter-governmental body that sets global standards relating to AML and CFT, is expected to issue guidance in the coming weeks for jurisdictions that fall under its oversight, which consists of over 180 countries, to start regulating their cryptocurrency markets.
“We are beginning to see the cryptocurrency community preparing for an influx of enforcement actions and regulatory guidance over the coming months,” said Jonathan Levin, Co-founder and COO, Chainalysis. “Exchanges like Lendingblock are positioning themselves ahead of the curve by putting these procedures in place now to support clients globally.”
"It is important to create a secure and transparent lending exchange that not only meets the needs of our regulator, but also one that our institutional clients trust,” said Steve Swain, CEO, Lendingblock. “Partnering with Chainalysis helps us ensure top-of-the-line compliance standards for our clients.”
Chainalysis KYT (Know Your Transaction) helps companies doing business with cryptocurrencies meet global regulatory requirements and reduce manual workflows through automated counterparty risk screening. Cryptocurrency businesses and financial institutions are able to filter their user bases and access real-time data, case management, and reporting features. Chainalysis KYT is being used by approximately 110 cryptocurrency businesses and financial institutions in 35 countries. In April, Chainalysis closed its $36M Series B round led by Accel with participation from Benchmark, Sozu, and MUFG.