Blockchain -analysis company Chainalysis works together with the supplier Lukka of data and software solutions to improve the risk product of the virtual assets service providers.
VASPs play a crucial role in the crypto ecosystem by facilitating access and acceptance for both retail and institutional users.
However, the market comes with certain Vasp-related risks that users may want to assess before they can be brought to boarding on different platforms. The “Know-Your-Vasp” function of chainalysis enables users to analyze transactions on chains to better understand exposure and the risk of counterparty.
Financial institutions, crypto companies, supervisors and other users can use this tool. Applications include monitoring vasp’s with automatic reports on risk scores – an important advantage in a market where illegal addresses received more than $ 40 billion in 2024.
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Off-chain data integration, made possible by collaboration with Lukka, will further improve the Vasp function, Chainalysis said in a blog post. The integration makes both on-chain and off-chain screening of crypto platforms possible, with available data, including regulations licenses, names of legal entities and jurisdiction.
“Having visibility in the characteristics of a vasp’s on- and off-chain is essential for thorough due diligence and compliance. It offers a fast, clear and usable snapshot to help users determine whether they should invest in the full Due Diligence process for a Vasp, save time and resources, ”wrote Chainalysis.
Chainalysis says that these integration will enable organizations to better assess potential risks and follow illegal activities. It is also expected to improve detection and compliance, so that developers can use insights to create solutions that improve customer protection.
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