Line’s Crypto Exchange BitBox Integrates Chainalysis Crypto Compliance Solution

News | June 24, 2019 By:

BitBox, the digital asset exchange operated by Japan-based social messaging platform Line, has integrated a cryptocurrency compliance solution developed by New York-based crypto-tracker Chainalysis.

BitBox, which was launched in 2018, offers only crypto-to-crypto exchange services and does not support any crypto-to-fiat trading. It currently handles nearly 30 cryptocurrencies, including bitcoin (BTC), Ripple (XRP), ethereum (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), and Litecoin (LTC). The platform is available globally, with the exception of Japan and the United States.

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.

BitBox has integrated Chainalysis KYT, enabling it to monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis. The integration also allows BitBox to leverage the user interface to quickly understand the risk profile of each user with the latest data and filter them by level of risk exposure to identify those that require the most immediate attention.

“Chainalysis’ compliance technology excels at meeting anti-money laundering requirements while also ensuring future best practices,” said Youngsu Ko, CEO of LINE Tech Plus, LINE. “By adopting Chainalysis KYT, BitBox will provide safe and secure trading experiences while demonstrating our commitment to compliance.”

Jonathan Levin, Co-Founder and COO of Chainalysis, said that they have heard from regulators that blockchain analysis is an important part of an effective anti-money laundering solution, and will be a significant factor in cryptocurrency businesses’ ability to comply with global regulations.

“Exchanges like BitBox that implement these best practices ahead of regulatory evaluations will show a dedication to compliance,” Levin said.