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Chainalysis Enables Coinfield Exchange To ‘Know Your Transaction’

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Blockchain analysis company, Chainalysis, will provide crypto exchange CoinField with its Know-Your-Transaction (KYT) software, in a partnership announced yesterday.


Chainalysis Extends its Reach

CoinField will use the KYT software to identify high-risk cryptocurrency transactions in real time, receiving in-depth insights into the origins of each. Transactions can be traced on different blockchains, providing a graphical mapping of cryptocurrency transaction flow.

The exchange will also use Chainalysis’ Reactor to further investigate suspicious activity or transactions which violate risk typologies.

Chainalysis’ technology increases CoinField’s ability to exceed anti-money laundering requirements, proving its commitments to compliance. But the partnership also benefits Chainalysis, as Chief Revenue Officer, Jason Bonds, explained:

CoinField’s mission to make cryptocurrency more accessible globally complements our mission to build trust in blockchains. We both believe compliance is critical to the mainstream adoption of cryptocurrency, and we look forward to partnering with CoinField to promote the safe use of cryptocurrencies globally.

AML Implementation Growing In Crypto Space

As Bitcoinist reported, Chainalysis previously partnered on an AML solution with Bitfinex cryptocurrency exchange. Bitfinex Chief Compliance Officer said that the “comprehensive compliance solution,” would help them, “to keep bad actors off of our platform, while protecting the privacy of our users.”

Stablecoin Tether also got on board with Chainalysis this month, using the firm’s AML technology to “monitor the stablecoin’s usage across its blockchain, enabling the real-time tracking of suspicious transactions.”

Anti-money laundering regulations are becoming increasingly tough for the cryptocurrency industry. Since the European Union’s 5th Anti-Money Laundering Directive (AML5D) went into force in January, digital assets have been specifically targeted.

European nations have also implemented the regulations in slightly different interpretations, so rules vary across the bloc. Crypto firms in Austria, for example, could be fined €200k for failing to register for a license-application before the cut-off date of January 10.

AML Is Not Just For Cryptocurrency…

…although you might think so, with all the noise around anti-money laundering being directed at the crypto space.

But AML rules have applied to (and been broken by) banks since before Bitcoin was a twinkle in Satoshi Nakamoto’s eye. And they continue to be broken by banks… rather a lot.

Bitcoinist recently reported that the second biggest bank in Australia managed to break AML laws more than 23 million times in the period from 2013 to 2019.

23 Million… They must hardly have had time to do anything else.

What are your views on Coinfield’s latest partnership with Chainalaysis? Add your thoughts below!


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Brad Garlinghouse’s lawyers file request for Binance documents in ‘international’ challenge to SEC lawsuit

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The lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission, or SEC, now involves major crypto exchange Binance after a recent filing on behalf of Ripple CEO Brad Garlinghouse.

According to court documents filed in the Southern District of New York on Monday, Garlinghouse’s legal team has requested documents “relevant to the case and unobtainable through other means” from Binance Holdings Limited, the Cayman Islands-based subsidiary of the major cryptocurrency exchange. The filing cited U.S. laws concerning the Department of State and the Hague Convention and asked the court to issue a letter of request for the Central Authority of the Cayman Island to compel evidence from Binance.

“Mr. Garlinghouse seeks foreign discovery on the basis of his good faith belief that [Binance Holdings Limited] possesses unique documents and information concerning this case, and specifically, concerning the process by which transactions in XRP allegedly conducted by Mr. Garlinghouse on foreign digital asset trading platforms were conducted,” said the filing.

Specifically, the lawyers seem to be challenging claims from the SEC that the Ripple CEO sold more than 357 million XRP tokens on “worldwide” crypto trading platforms to investors “all over the world.” The team cited Section Five of the Securities Act of 1933, stating the alleged illegal XRP sales applied only to domestic sales and offers of securities. The documents requested of Binance may contain evidence in support of that claim.

“As the SEC knows, Mr. Garlinghouse’s sales of XRP were overwhelmingly made on digital asset trading platforms outside of the United States […] the discovery that Mr. Garlinghouse seeks will be relevant to demonstrating that the offers and sales that the SEC challenges did not occur in this country and are not subject to the law that the SEC has invoked in this case.”

Related: Judge allows Ripple to depose SEC official who decided ETH is not a security

The request is part of a lawsuit the SEC filed against Ripple in December, alleging the firm, Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales. Ripple’s legal team had previously claimed that XRP is more like Bitcoin (BTC) or Ether (ETH) — which the regulatory body has classified as commodities rather than securities.

However, the firm seems to be switching gears — or trying to augment its case — by challenging allegations of domestic versus international token sales. Garlinghouse and Larsen filed a motion in June petitioning international authorities to request documents from several non-U.S.-based crypto exchanges including Bitstamp, Huobi, and Upbit. The case will reportedly end the pre-trial discovery process on Oct. 15.