Robinhood Turns to Chainalysis for Data, Compliance Tools

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Crypto tracing agency Chainalysis mentioned it’ll present information and compliance instruments to Robinhood’s on-line crypto buying and selling service, Robinhood Crypto.

  • Chainalysis mentioned Robinhood (Nasdaq: HOOD) will use the software program to meet compliance necessities and assist maintain accounts secure, the corporate mentioned in a weblog publish Monday.
  • Robinhood Crypto will use Chainalysis KYT to flag “risky and illicit transactions” in actual time, and Chainalysis Reactor to assist with due diligence into potential suspicious exercise.
  • Robinhood has mentioned it expects to make its long-awaited crypto pockets out there to all clients by early 2022. The wallets have a waitlist of greater than 1.6 million.
  • As shopper entry to cryptocurrency grows there may be elevated consideration towards regulatory compliance requirements.
  • “Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner,” mentioned Ben Einstein, head of partnerships at Robinhood Crypto.

Read extra: Robinhood Shares Fall as Crypto Trading Revenue Declines Sharply