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Date: December 2nd 2021
Published on: Products
Crypto AML, Crypto Compliance, Crypto Regulation, KYA, KYT,
Last week, we launched the new version of our KYA and KYT reports. This update aims to facilitate the daily work of compliance teams working with cryptocurrency and help businesses to comply with evolving legal requirements on cryptocurrencies.
First, let’s have a look at what are KYA and KYT. KYA means know-your-address, and a KYA report gives detailed information about a specific cryptocurrency address. Equally, KYT means Know-your-transaction and gives detailed information about a cryptocurrency transaction.
Then, you might ask: “why do I need these reports.” The answer is simple: compliance.
Today, more and more countries are implementing regulations on cryptocurrency and businesses operating with cryptocurrencies to prevent financial crimes like money laundering, terrorism financing, fraud, etc.
In short, these regulations require companies to comply with specific rules. For example, in some jurisdictions, companies must register with their local regulator and prove the effectiveness of their anti-money laundering and combating the financing of terrorism (AML/CFT) processes. Also, another requirement could be the reporting of suspicious activity to the regulator. Depending on the jurisdiction, companies must file suspicious activity reports (SARs) or suspicious transaction reports (STRs) with their regulator. The aim is to report any activity suspected to be linked with money laundering, terrorism financing, or fraud, for instance.
Consequently, companies must be able to provide regulators with sufficient proof of these suspicious activities. We have seen that our KYA KYT reports are very useful for this. They give compliance officers insightful data on a cryptocurrency address or transaction, which they can use in the reporting process.
Also, the reports are very useful for archiving data and sharing specific information regarding an address or a transaction.
All our report features, including KYA and KYT reports, balance/transaction history, and incoming/outgoing scoring for each address/entity, help compliance teams in their daily work, including accounts monitoring, for example.
First, our new KYA KYT reports are now more comprehensible and easier to read, thanks to a simpler design. Users can easily grasp any piece of information they might need quickly.
Second, the reports are still generating very rapidly. Users just have to click on a button, and the report is ready within 30 seconds!
Then, we had to rethink the information that the reports should display. Consequently, the KYA KYT reports are now more comprehensive with insightful data on cryptocurrency addresses and transactions such as:
Also, our KYA KYT reports now feature different appendices to help users better understand important information. For example, they can find information on:
Finally, Scorechain’s KYA and KYT reports are available for all supported blockchains. Today, the solution supports Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dash, XRP Ledger, Tezos, and Tron.
And, the reports can also be generated for ERC20 tokens, IOUs, and TRC10 / TRC20 tokens.
However, complying with cryptocurrency AML regulation requires more processes from companies. Scorechain Blockchain Analytics suite provides compliance teams with all the necessary tools to adopt a risk-based approach to cryptocurrency transaction monitoring.
For example, our risk scoring and risk indicators help users to understand the level of risk of entities, addresses, and transactions. Risk scoring and indicators are also fully customizable to adapt to every jurisdiction and internal process.
Moreover, the solution also comes with other useful features such as the Case Manager, the Entity Directory, or the Exploration Tool to implement holistic AML processes on cryptocurrencies.
Would you like to get a free demo of the solution and see how it can help your business in its compliance journey? Don’t hesitate to reach out.
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.