Cryptoloans Platform Lendingblock Teams With Chainalysis For Compliance Push

News | June 10, 2019 By:

New York-based crypto-tracker Chainalysis has teamed with digital asset lending platform Lendingblock to implement anti-money laundering (AML) technology and best practices.

Founded in 2014, Chainalysis offers crypto investigation and compliance solutions to global law enforcement agencies, regulators, and businesses as they work together to fight illicit cryptocurrency activity. Its crypto transaction monitoring tool, called Chainalysis KYT (Know Your Transaction), is designed to automate the assessment of money laundering risk, thereby helping cryptocurrency businesses and financial institutions to meet regulatory requirements. The tool is being used by more than 110 cryptocurrency businesses and financial institutions in 36 countries.

Based in London, Lendingblock is an open exchange for cryptocurrency loans, where borrowers and lenders are instantly matched. LDN token is the fuel for the Lendingblock engine. It enables the mechanics and operations of the Lendingblock platform. The company seeks to replicate and ‘improve upon’ the traditional methods of securities lending and apply it to cryptocurrency markets.

The Chainalysis partnership will allow Lendingblock to augment its existing in-house know your customer (KYC) standards and enforce due diligence processes. This will reportedly protect its institutional client base, including hedge funds, trading houses, exchanges, and market makers, while also supporting the progression of regulatory frameworks.

“It is important to create a secure and transparent lending exchange that not only meets the needs of our regulator, but also one that our institutional clients trust,” said Steve Swain, CEO of Lendingblock. “Partnering with Chainalysis helps us ensure top-of-the-line compliance standards for our clients.”

In addition to staying ahead of the competition, Lendingblock partnered with Chainalysis to be prepared for regulatory enforcement actions, including the upcoming global regulatory guidance from the Financial Action Task Force (FATF).

“We are beginning to see the cryptocurrency community preparing for an influx of enforcement actions and regulatory guidance over the coming months,” said Jonathan Levin, Co-founder and COO of Chainalysis. “Exchanges like Lendingblock are positioning themselves ahead of the curve by putting these procedures in place now to support clients globally.”