Blockchain analysis firm, Chainalysis has launched beta-version of Chainalysis Kryptos, software that will allow traditional financial institutions to study risks associated with different cryptocurrency companies to make a better-informed investment decision. Kryptos will be generally available by early 2020.
Chainalysis polled 350 finance professionals in September 2019 and found that almost half of them believed Bitcoin’s growth rate next year will be more than that of equities, fixed income, and house price index. However, their enthusiasm does not translate to investment as they are concerned that Bitcoin and cryptocurrency, in general, can be used too easily for illegal money transfers, financial fraud money laundering. There is also a lack of awareness about the enthusiasm for cryptocurrency among their customers and how they will react to it. Thus, the lack of transparency in the cryptocurrency market was one of the major factors keeping financial institutions away from it.
Kryptos will give users details about Know Your Customer (KYC) practices followed by a particular cryptocurrency company or exchange, the country from where it operates, types of cryptocurrency assets it supports, the volume of transaction activity on its blockchain and its counterparties.
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Chainalysis’s Co-founder and CEO Michael Gronager said,
Finally, financial institutions can access the transparency they need to fulfill their compliance responsibilities, meet customer demand, and seize the market opportunity they already believe in.
Kryptos will increase transparency in cryptocurrency markets to the degree that will meet the compliance standards followed by financial institutions for fiat currency. It will legally help them to create financial products to serve the cryptocurrency industry and increase their exposure to this asset class.
Chainalysis’s Co-founder and Chief Strategy Officer Jonathan Levin said,
Kryptos will also help Cryptocurrency businesses build trust with their banks. All players in the Cryptocurrency ecosystem stand to benefit from increased transparency.
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Using Kryptos, users can also verify risks associated with wire transfers or credit card transactions by running detailed company information through transaction monitoring systems and risk models. Chainalysis provides compliance software to banks and other financial institutions and even to governments.
