Bittrex Will Track Criminal Activity on its Exchange
The Bittrex cryptocurrency exchange has begun using transactional monitoring software developed by Chainalysis. They plan to monitor and prevent suspicious activity on the trading platform using the new solution. New software called Chainalysis KYT (Know-Your-Transaction) will track user activity during the trading of the most popular coins - BTC, ETH, BCH, and others. The implementation of the new solution by the Bittrex exchange is taking place amid increasing regulatory control over the blockchain market. Recall that in June, the Financial Action Task Force (FATF) issued a set of recommended rules for digital asset service providers. Cryptocurrency platforms had 12 months to develop the necessary mechanisms for compliance with the rules. According to representatives of the exchange, the new software will help “automate the process of meeting regulatory standards” which will allow the team to devote their time to solving other technical problems. Chainalysis KYC will detect suspicious transactions and notify the analyst-operator, who will make a decision on whether the threat of illegal activity is real or not. If such transactions are discovered, the exchange has to inform the regulator.