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.
The integration with Lukka significantly improves VASP monitoring capabilities:
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.
For financial institutions and crypto companies, this integration offers several key advantages:
These benefits empower businesses to make informed decisions while reducing exposure to high-risk entities.
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