Crypto compliance can only improve as two top players in finance and blockchain analytics have partnered to provide bespoke crypto-related compliance and risk investigation services.
On July 25, Chainalysis, a leading blockchain analytics firm, announced that it formed a strategic alliance with Deloitte, a top global accounting firm, to help address compliance challenges in the crypto ecosystem. This strategic alliance comes as regulators heighten expectations and increase regulatory standards for the crypto ecosystem.
Deloitte And Chainalysis To Address Compliance Challenges In The Crypto Ecosystem
Chainalysis and Deloitte seek to meet the growing demand as financial institutions develop digital assets risk management strategies and global regulators and law enforcement operatives clarify regulatory guidelines.
The partnership between Deloitte and Chainalysis will help their mutual clients leverage Chainalysis’ blockchain dataset and bespoke analytics software alongside Deloitte’s services to manage risks, investigate threats, and enhance compliance.
A Chainalysis spokesperson revealed that both firms worked for this alliance for years, aiming to help more organizations embrace blockchain technology.
In the announcement, Chainalysis president and chief revenue officer Thomas Stanley said the partnership targets their mutual customers, including regulators, law enforcement agencies, and financial institutions.
According to Stanley, this collaboration would help identify transformation gaps, speed up mission success at a large scale, mitigate risks, and increase revenue.
Deloitte’s advisory blockchain and digital asset practice lead and principal Deloitte & Touche LPP, Tim Davis, also commented on the development. Davis said Deloitte is committed to advising clients on the best approaches to risk management, analytics use, and regulatory compliance as digital asset adoption increase across sectors.
The new partnership with Chainalysis demonstrates Deloitte’s interest in leveraging the analytics firm’s digital asset innovation for its client’s benefit, Davis explained.
Accelerating Crypto Adoption Through Compliance
In a document detailing the alliance, Deloitte highlighted some challenges law enforcement agencies face when people use cryptocurrencies to obscure transactions and launder money. And the program aims to address the challenges of repelling regulators, enforcement agencies, and financial institutions from crypto.
The finance audit and accounting firm said its partnership with Chainalysis could help fish out bad players responsible for these acts and trace fund flows to high-risk or sanctioned entities.
According to the Deloitte spokesperson, the alliance program is initially rolling out in the United States. “But it’s something other markets can readily adopt. We believe that other global markets will follow suit,” he said.
Chainalysis said it would work with Deloitte to ramp up digital asset risk management, analytics, investigation, anti-money laundering/know your customer, and regulatory compliance.
It bears mentioning that Deloitte recently posted more than 300 job listings under crypto-related roles, with 97 positions for the United States alone.