Chainalysis offers cryptocurrency investigation and compliance solutions to global law enforcement agencies, regulators, and businesses as they work together to fight illicit cryptocurrency activity.
The partnership is to enable paxful improvement in its compliance and KYC processes.
As part of the partnership, Paxful will be using chainalysis Know your Customer (KYC) compliance tool and “rector” software to track and investigate high risk transactions on their platform.
Chainalysis made it known that this is the first time they will be working and partnering with a peer to peer digital exchange platform.
In a statement from chainalysis spokesperson
“ Paxful, which accounts for around 25% of all peer to peer cryptocurrency activity is currently the only peer to peer exchange that chainalysis is working with.
“We are open to talking to other peer to peer exchange”
Earlier, chainalysis suggested that all peer to peer exchanges were “inherently risky” as a lot of them are decentralized and don’t require customers to open in a complaisant manner.
Paxful leadership reassures their commitment to investing heavily to further improve compliance procedures. According to the exchange, they are using various software to monitor crypto transactions.
In a statement from Paxful, their goal is to make the market free from fraud and scammers.
Paxful joins other digital asset exchange platforms that are currently using chainalysis software tools to monitor suspicious and possibly fraudulent transactions. Chainalysis includes Bitfinex, Binance, Bittrex among others.