Illicit crypto transactions: BitMEX deploys Chainlysis KYT
- BitMEX exchange incorporates Chainalysis KYT to screen illegal crypto transactions
- The move comes after BitMex faces charges by the Commodity Futures Trading Commission
- Parent company, 100× Group, actively works to increase exchange compliance levels.
A recent announcement indicates that BitMEX exchange will now incorporate Chainlysis KYT as a monitoring tool for crypto transactions. The blog post announcement follows BitMEX been charged by United States regulators in October. The announcement was made on Tuesday. After facing charges such as aiding money laundering and facilitating dubious processes, BitMEX has become more security wary. The strategic partnership made is targeted at salvaging the previous situation.
Illicit crypto transactions led to the dismissal of BitMEX officials.
The accusatory charges led to the withdrawal of over 41,000 Bitcoin on the exchange. It also resulted in the eventual dismissal of top BitMEX officials, Samuel Reed and Greg Dwyer. Asides being accused of facilitating illegal transactions, the exchange was also indicted based on charges of unlawful operations.
BitMEX parent company CCO backs move to safeguard crypto transactions.
The BitMEX parent company’s COO, Malcolm Wright, has acknowledged the need for stricter compliance measures. According to him, Chainalysis will provide innovative solutions relating to detecting bad actors and preventing illicit crypto transactions. Chainalysis and BitMEX have been in partnership for a substantial period.
The know-your-transaction tool (KYT) from Chainalysis will help monitor, identify, and prevent illicit transactions on BitMEX. The KYT remains a top-quality tool developed by the blockchain intelligence provider. The continued partnership will facilitate meeting strict compliance measures. Besides supporting BitMEX compliance teams, integrating the KYT will help BitMEX be a responsible team player.
BitMEX has also made other moves targeted at raising its compliance levels. The move to incorporate Chainalysis’s know-your-transaction tool comes after a recent collaboration with Eventus and Refinitiv.