Blockchain analysis company Chainalysis has announced its partnership with Paxful, a global, P2P Bitcoin marketplace.
The aim of their agreement is to raise the bar for compliance standards for P2P exchanges. Paxful uses Chainalysis KYT (know your transaction) to monitor its platform’s crypto transactions in real-time and Chainalysis Reactor to build investigations when it detects suspicious activity. These tools amplify Paxful’s compliance expertise and sets a new compliance benchmark for P2P cryptocurrency exchanges globally.
Paxful is focusing on top-notch compliance and KYC standards, driving Chainalysis to evolve its policy and evaluate P2P exchanges on a case-by-case basis before labelling them as risky, just as it does for other cryptocurrency exchanges. Moreover, through its work with Chainalysis, Paxful aims to develop new controls for customer protection, including blocking outgoing transactions to high-risk addresses linked to terror financing, sanctioned addresses, child abuse websites, and stolen credit card platforms.
By leveraging Chainalysis KYT, cryptocurrency businesses like Paxful can monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis. At the same time, Chainalysis Reactor assists crypto businesses such as Paxful to further investigate suspicious transactions and provide detailed reporting to regulators and law enforcement on criminal activity including fraud, extortion, and money laundering on the blockchain.