Outside Source
Blockchain analysis firm Chainalysis has partnered with data and software solutions provider Lukka to enhance its Virtual Asset Service Providers risk product.
VASPs play a crucial role in the crypto ecosystem by facilitating access and adoption for both retail and institutional users.
However, the market comes with certain VASP-related risks that users may want to assess before onboarding onto various platforms. Chainalysis’ “know-your-VASP” feature allows users to analyze on-chain transactions to better understand exposure and counterparty risk.
Financial institutions, crypto businesses, regulators, and other users can leverage this tool. Applications include monitoring VASPs with automatic alerts on risk scores—a key advantage in a market where illicit addresses received over $40 billion in 2024.
Off-chain data integration, made possible through collaboration with Lukka, will further enhance the VASP feature, Chainalysis said in a blog post. The integration enables both on-chain and off-chain screening of crypto platforms, with available data including regulatory licenses, legal entity names, and jurisdiction.
“Having visibility into a VASP’s on- and off-chain characteristics is essential for thorough due diligence and compliance. It provides a fast, clear, and actionable snapshot to help users determine whether they should invest in the full due diligence process for a VASP, saving time and resources,” Chainalysis wrote.
Chainalysis says this integration will allow organizations to better assess potential risks and track illicit activity. It is also expected to improve detection and compliance, enabling developers to use insights to create solutions that enhance customer protection.
This article first appeared at crypto.news
