Paxful integrates Chainalysis's activity monitoring solution

by in Blockchain News

Paxful integrates Chainalysis's activity monitoring solution

Paxful's P2P Bitcoin trading platform has partnered with analytic startup Chainalysis. The purpose of the cooperation is to use the startup software to reduce the risk of violation of legislative norms during transactions.

Paxful uses two tools.

The first, Chainanalysis KYT, allows you to track and block suspicious transactions in real-time. We are talking about sending cryptocurrency to high-risk addresses, for example, related to the investment in terrorism, under sanctions, or belonging to darknet resources.

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The second tool, Chainanalysis Reactor, is used to investigate suspicious activity.

An analytical startup noted that they had previously labeled all crypto P2P exchanges as “essentially risky,” since they are decentralized and often do not even require users to create an account. However, the introduction of Paxful control tools “sets a new benchmark for regulatory compliance for P2P platforms,” the statement said.

Previously, Chainanalysis integrated high-risk centralized bitcoin exchanges such as Binance, Bittrex, and Bitfinex to mark high-risk transactions. Tether also uses start-up tools by the issuer of stablecoin USDT.