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Chainalysis Partners with Lukka to Enhance VASP Risk Assessment with Off-Chain Data

Business
Updated: 2/5/2025
Chainalysis Partners with Lukka to Enhance VASP Risk Assessment with Off-Chain Data
#Blockchain #Chainalysis #Gaming
Chainalysis has joined forces with Lukka to revolutionize its Virtual Asset Service Providers (VASP) risk product. By integrating off-chain data, this partnership aims to provide a more comprehensive view of VASP-related risks, bolstering compliance and security across the crypto ecosystem.

Why This Partnership Matters

VASPs are critical to the growth of the crypto industry, enabling both retail and institutional adoption. However, these platforms carry inherent risks, including exposure to illicit activities. Chainalysis’ “know-your-VASP” feature already allows users to analyze on-chain transactions, helping identify potential threats.

Now, with Lukka’s data solutions, Chainalysis can combine on-chain and off-chain data for a more robust risk assessment. This integration includes regulatory licenses, legal entity details, and jurisdictional information, enhancing due diligence for financial institutions, crypto businesses, and regulators.

How Off-Chain Data Enhances Risk Management

The integration with Lukka significantly improves VASP monitoring capabilities:

  • Comprehensive Risk Profiles: Users can evaluate both on-chain activity and off-chain attributes, gaining a clearer picture of potential threats.
  • Regulatory Insights: Access to real-time data on regulatory compliance helps businesses stay ahead of legal obligations.
  • Automated Alerts: Organizations receive notifications when risk scores change, enabling proactive risk management.

This dual-layered approach is especially critical as the crypto industry faces rising threats. In 2024 alone, illicit addresses received over $40 billion, highlighting the need for more advanced monitoring tools.

Benefits for Financial Institutions and Crypto Businesses

For financial institutions and crypto companies, this integration offers several key advantages:

  • Enhanced Due Diligence: Quickly determine if a VASP warrants deeper investigation, saving time and resources.
  • Improved Compliance: Stay compliant with evolving regulatory requirements through automated monitoring and risk scoring.
  • Fraud Detection: Detect and mitigate potential fraud faster with integrated data insights.

These benefits empower businesses to make informed decisions while reducing exposure to high-risk entities.

The Future of Crypto Risk Assessment

Chainalysis’ partnership with Lukka marks a pivotal step in the evolution of crypto risk management. By bridging the gap between on-chain and off-chain data, this collaboration sets a new standard for VASP risk assessment.

As the crypto industry continues to mature, the ability to track and analyze risks from multiple data sources will be essential. This integration not only strengthens compliance efforts but also enhances security across the entire digital asset ecosystem.

Chainalysis