You’ve heard of KYC – Know Your Customer – and possibly also KYT – Know Your Transaction – but have likely yet to experience it in action. KYC have lately become the norm for crowdsale registration and exchange verification.
Now, KYT is on the rise, and it threatens to blacklist bitcoiners whose cryptocurrency is deemed unclean. Also read: Chainalysis Raises $16Mn – Plans to Monitor Multiple Blockchains One company whose name is synonymous with the rise of Know Your Transaction is Chainalysis.
The firm, who specialize in following the money trail through the blockchain, are a controversial company to say the least. On the one hand, their software has helped trace the movements of Mt Gox’ stolen bitcoins.
But on the other hand, cryptocurrency users don’t like to think of their every transaction being recorded and associated with their real world identity in perpetuity. And having recently raised $16 million, Chainalysis’ snooping tools are coming soon to a blockchain near you.
From the perspective of banks and exchanges, which must tread very carefully and be seen not to turn a blind eye to money laundering and other illegal activities, KYC may not be enough. It is, after all, a static process that can vouch for the legitimacy of a particular person at a particular moment in time. Read more from news.bitcoin.com…
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