Paxful And Chainalysis Set Compliance Standards For P2P Exchanges

Paxful and Chainalysis will work together with all the tools they have in order to boost compliance standards. Both of the companies set a new benchmark for all of the P2P exchanges and there will be monitors that will help fight criminal activity such as extortion, money laundering, and fraud on the blockchain as we are reading in the crypto news below.

The blockchain analysis company Chainalysis just announced the new partnership with Paxful in order to boost the marketplace and to satisfy the compliance requirements. For Chainalysis, the peer to peer crypto exchanges has always been dubbed as risky because a lot of the decentralized exchanges do not require users to set up an account. Paxful however, made a precedent for P2P exchanges by focusing on the top-notch compliance and KYC standards, which will drive Chainalysis to evolve its new policies and to evaluate the exchanges for each case before labeling them as risky.

Paxful and Chainalysis now investigate all of the P2P exchanges in the same manner as the see the centralized crypto exchanges:

 “Compliance is the key factor for establishing trust in cryptocurrency exchanges. By adopting a case-by-case approach to evaluating P2P venues, we are helping to broaden trust and transparency across the cryptocurrency ecosystem.”

Paxful which is a global Bitcoin marketplace uses the Chainalysis know your transaction protocol to monitor all crypto transactions in real-time and Chainalysis reactor to create investigations when it detects more activity that is dubbed suspicious. These tools will enhance the compliance of Paxful and will create a new set of compliance benchmark standards for P2P crypto exchanges around the world. According to Chainalysis, Chief Revenue Officer Jason Bonds commented:

 “Paxful transformed the way that we think about P2P exchanges. Their compliance standards, complete with real-time transaction monitoring, set a new bar for P2P exchanges globally.”

By working with Chainalysis, Paxful is well-equipped to create new controls for customer protection including blocking the transactions to high-risk addresses that are connected to terrorist financing and dark web platforms but also stolen credit card platforms. If Paxful continues to complete more risk assessments in the future, the capabilities of the platform will only expand. By leveraging Chainalysis KYT, crypto businesses such as Paxful can monitor bigger volumes of crypto activity and identify high-risk transactions in the future.

The real-time alerts on high-risk activity will allow the compliance teams to focus on the most important activities and will better allocate the resources to enforce compliance policies and fulfill the regulatory obligations to report suspicious activity.