KuCoin Announces Partnership With Chainalysis
- KuCoin will detect early warnings of irregular activities to protect the digital assets of its users.
- Chainalysis continues to work with leading exchanges in the Asia Pacific region.
One of the top 20 digital currency trading platforms in the world, KuCoin, announced a partnership with blockchain analysis company Chainalysis. The exchange will use Chainalysis’ Know-Your-Transaction (KYT) software to expose and block money laundering and other illicit actions in real-time and further deepen KuCoin’s commitment to security and compliance.
In addition, Chainalysis Reactor will be used for conducting further investigations into suspicious activities. With this collaboration, the two companies will continue to promote compliance-first business practices in the crypto world.
Since KuCoin’s launch in September 2017, it has grown to be one of the most popular crypto exchanges globally. Currently, “The People’s Exchange” provides financial services such as fiat-to-crypto, crypto-to-crypto, token launch, futures, borrowing, staking, etc, to its 5 million users across 207 countries globally.
Except using Chainalysis KYT, KuCoin uses its own fraud monitoring system, which detects early warnings of irregular activity to protect the digital assets of its users.
KuCoin Global CEO, Johnny Lyu, commented on the partnership:
“We teamed up with Chainalysis to create a safe and compliant trading environment. Through KuCoin’s efforts, the crypto world will combat illegal activities, such as laundering money and financing terrorism. Although KuCoin has already deployed in this aspect, we hope to further strengthen our technical expansion into compliance with our cooperation with Chainalysis. Not only does it provide infrastructure to the blockchain ecosystem, but it also meets regulatory compliance requirements across different countries and regions.”
Chainalysis is a strategic partner to governments, financial institutions, and cryptocurrency businesses, providing expertise on complex crypto-related crime and money laundering tactics and procedures. Through Chainalysis KYT, compliance departments can monitor cryptocurrency actions and detect high-risk transactions by using AML standards to each transaction across every user in an organization.
Chainalysis Reactor, on the other hand, aids in identifying and stopping bad actors, which use cryptocurrency for illegal activities like money laundering, fraud, and extortion.
“Chainalysis is thrilled to partner with exchanges like KuCoin that prioritize compliance and the safety of its users,” noted Chainalysis’ Chief Revenue Officer Jason Bonds. “Our relationship with KuCoin is also an example of our continued commitment to working with leading exchanges in the Asia Pacific region, an important hub of cryptocurrency activity.”
- The updated KYC checks will be introduced on 15 July, after which new users will be required to complete the process in order to gain full access to the exchange’s services.
- Existing users who fail to complete the KYC checks will face limitations on the platform, such as being unable to deposit new funds and only having access to certain services.
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- The Twitter account of the crypto exchange was compromised for roughly 45 minutes on Monday, resulting in 22 transactions connected to the hack.
- KuCoin has calculated that the total asset losses were 22,638 USDT, and noted that it will fully reimburse users affected in the incident.
- CEO Changpeng Zhao pledged on Tuesday to implement a Proof-of-Reserve mechanism at Binance to provide full transparency, and called on all industry players to follow suit.
- KuCoin, Poloniex, Huobi, and OKX were among the first crypto exchanges that promised to publish proof of their reserve holdings within a month.