Blockchain cybersecurity firm GK8 this week announced a partnership with Chainalysis, the blockchain analysis company, to help financial institutions identify high-risk activity including terrorism financing, money laundering, scamming, and more. Users of GK8’s custody platform will now have the option to integrate with Chainalysis KYT (know your transaction), the compliance solution that provides real-time transaction monitoring of large volumes of cryptocurrency activity to identify high-risk transactions. As the number of cryptocurrency users continues to increase, so does the need for robust security and compliance solutions that will help detect and stop illicit activity.
“Money laundering is not just a huge issue for anyone in the blockchain ecosystem – it’s also a barrier that keeps traditional financial institutions from jumping on the crypto bandwagon”, said GK8 co-founder and CEO Lior Lamesh. ”The integration of Chainalysis to our platform addresses this issue, providing banks with best-in-class technology to prevent money laundering attempts by criminals and terrorists alike. In the grand scheme of things, this partnership is a big step forward in legitimizing digital currency, turning it into a mainstream investment channel.”
“While large global institutions continue to adopt digital assets, building trusted, secure and flexible infrastructure for the cryptocurrency industry is critical for its growth,” Chailalysis CRO Jason Bonds said.
Financial institutions using GK8’s custody solutions can leverage both platforms through the GK8 interface and API. The integrated software solution will allow users to identify transactions sent to or received from high-risk addresses, without compromising the security and operability of legitimate blockchain transactions. With real-time alerts, compliance teams will be able to focus on the most urgent transactions and fulfill their regulatory obligations to report suspicious activity.