ConsenSys Launches DeFi Compliance Service, Will Monitor 280,000 Ethereum Assets
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, by Jeff Benson, translated by: Overnight's Porridge, published with permission.
According to news on June 9, Ethereum company ConsenSys is launching a compliance service called Codefi Compliance to help exchanges and decentralized finance (DeFi) project parties analyze trading activities related to 280,000 Ethereum tokens.
It is reported that Codefi Compliance is part of ConsenSys' existing Codefi product suite, which is designed to help companies automatically follow KYC guidelines to ensure anti-money laundering (AML) and counter-terrorist financing (CFT) compliance.
Sumit Kishore, Head of Business Development Compliance at Codefi, told Decrypt:
“We provide a variety of risk management and due diligence tools, and the launch of core compliance products focuses on KYC, which is the most requested type of analysis in Ethereum native finance and commerce.”
KYC requirements prevent financial institutions from being used to launder money or use funds for illegal activities. In the US, the Financial Crimes Enforcement Network (FinCEN) oversees customer due diligence rules.
It applies to any institution that handles cash, securities, commodities, mutual funds, and must use a driver's license, passport, or other government-issued photo ID to identify its customers. In addition, financial institutions must create a "customer risk profile" and "report suspicious transactions".
Codefi Compliance, on the other hand, preserves a degree of anonymity by analyzing address behavior rather than customer behavior.
It is reported that there are other compliance-focused companies in the cryptocurrency space, including CipherTrace and Chainalysis.
Codefi Compliance believes that its competitive advantage lies in its focus on assets in the Ethereum ecosystem (including stablecoins such as DAI and Tether). According to ConsenSys, Codefi Compliance can handle 280,000 different digital assets issued on the Ethereum platform, including tokens that comply with ERC20, ERC721, ERC179 and ERC777 standards.
Kishore commented:
“DeFi and Web3 have huge developments, most of which are built on the Ethereum blockchain, and from an enterprise perspective, Ethereum continues to grow as the programmable blockchain of choice, Most of the large companies in the world currently using blockchain are developed on the basis of Ethereum.
"And John Jefferies, chief financial analyst from CipherTrace, said that with the proliferation of regulations, there must be a "vibrant market for compliance solutions."
It is reported that the fifth anti-money laundering directive of the European Union has entered into force, and the "travel rule" of the Financial Action Task Force (FATF) is about to be fully implemented. (Note: The Travel Rule is an agreement among the 37 member countries of the Financial Action Task Force that requires cryptocurrency firms, including exchanges, to share information with each other when transferring customer funds.)
Jefferies told Decrypt:
“With cryptocurrencies rapidly evolving and regulations changing, cryptocurrency analysis is a difficult market to enter. Incomplete or poor-quality data can have serious consequences, including the failure of anti-money laundering compliance programs.”
ConsenSys, on the other hand, believes it already has the data it needs, Kishore revealed:
"ConsenSys has developed a variety of DeFi and enterprise applications, and our software powers millions of users on the Ethereum blockchain."
