Virtual Asset Service Providers (Vasps) Play A Crucial Role in the Cryptocurrency Landscape by Providing Services that facilitate the use and adoption of digital assets by retail and institutional customers alike. From Exchanges to Custody Providers to Payment Processors, Vasps Are Helping Bridge the Gap Between Finance and the Blockchain.
However, as crypto becomes more integrated into the financial system, it is critical to assess and understand the risks associated with vasps. This principle, Models on Know-Your-Customer (KYC), is often Retreed to As Know-You-Vasp. How does one get a clear picture of a specific vasp's crypto risk? In 2024, Over $ 40.9 Billion in Value was received by illicit addresses, as seen below. It is this vital for fis, Crypto Businesses, Regulators, and Others to Be Able to Assess the Risk and Activities of Vasps Accurately and On Timely Basis to Protect Against Illicit Activity when onboarding customers, choosing business partners, or granting licens.
Solving this problem requires sophisticated analysis of on-chain transactions directly and indirectly linked to vasps to understand their exhibition and counterparties. USERS NEED TO BE ABLY TO EVALUATE A SPECIFIC VASP AGAINT The Broader Category to Understand If Seemingly Anomalous Activity is consist with that of similar vasps. For Example, A Service Might Experience An Increased Amount of Activity Related to Gambling, But in order to determine ifdes is needed, it is important to benchmark the amnt of gambling exposure vasps haveps have across the Whole Industry.
Chainalysis Know Your Vasp Solution
To Address this Critical Need, Chainalysis Provids Vasp Risking With Capabilitities to Fully Understand and Screen Vasp Risk. Built on the Industry's Leading and Trusted Blockchain Intelligence, Which Maps on-chain Activity to Real-World Entities, Users Are Able to Assess Vasps' Exposure To Illicit Activity. Searching a vasp's name or crypto address will generate a profile that provids insight across key risk categories. With Vasp Risking, Users can:
- View and monitor a vasp's risk profile
- Understand its risk score
- Assess Exposure and Counterparties
- Compare Against All Similar Vasps
In Addition, USERS CAN DIVE Deeply Into Risk Scores and Profiles With Control Over Settings, Adjusting Thresholds, Risk Severity, and More. With Chainalysis, Compliance Officers No Longer Need to Periodicalely and Manually Rescreen Vasps. Chainalysis Uniquely Provids continuous monitoring for automatic alerts when a vasp's activity changes its risk score.
Off-chain data in Partnership with Lukka
To enhance Vasp Risking capabilities, Chainalysis has Parted with Lukka to Integrate Critical Off-Chain Information Into the Vasking Product. USERS NOW GAIN A MORE UNDERSTANDING View of A VSP with Consolidated Data of Interest, Such as included Legal Entity Names, Regulatory Lisses, Jurisdictional Information, and More.
HAVING VISIBILITY INTO A VSAP's on- and off-chain characteristics is essential for thorough due to diligence and compliance. It provides a fast, clear, and actionable snapshot to help users determine where they should invest in the full due diligence process for a vasp, saving time and resources.
Walkthrough of off-chain data
The Integration of Off-Chain Data Into VSP Risking NEYING ENHANCES The Assessment Process. Here's A Brief Walkthrough of Some of the Key Information that off-chain Data Brings:
- Legal Entity Names and Territories: A understanding list of legal entity names associated with a given vasp, Along with the jurisdictions in which they operate.
- Regulatory LIFECS: Information about the licens HELD by a vasp, Including the licensing authority and the date of moving.
- KYC and AML STUTSES: Details about A VSP's Know Your Customer (KYC) and Anti-Money Laundering (AML) Policies.
- Offred Services: The Range of Services Provided by A VSP, Such As Spot Crypto Trading, Fiat Trading, Derivative Trading, NFTS, Stuking, and Lending.
- Restricted and Allowed Jurisdictions: A list of country where a vasp is restricted or allowed to operate.
Want to Learn More?
To Learn More About VSP Risking and How It Can Enhance Your Compliance and Due Diligence Processs, and off-chain data for compliance more generally, please Join Our Upcoming Webinar. In this session, you will read more about VSP Risking, Gain familiarity with key capabilitities, and watch a live vasking demonstration.
👉 Register for the webinar here!
About Lukka
Lukka Serves Risk-Mature Businesses Worldwide with Enterprise Data, Software and Compliance Solutions. Lukka Solves Financial, Risk, Compliance, and Trade Finance Use Cases that are complicated by the Characteristics of Blockchain Data. Lukka's Data and Software Products Are Award-Winning, Independently Audited, and designed to exceed Institutional Standards, Such As Those Issued by the Aicpa, ISO, IOSCO, and other Trusted Organizations, That Focus On Data Quality, Financial Calculation Acccuracy & Completeness, and Managing Technology Operational Risks. Lukka Provids Software and Data Solutions for Crypto Assets Used by Financial Institutions, Tax Professionals, Enterprises, and Consumers.
About Chainalysis
Chainalysis is the blockchain data platform, making it easy to connect the movement of digital assets to real-world services. Organizations Can Track Illicit Activity, Manage Risk Exposure, and Development Innovative Market Solutions with Intelligent Customer Insights. Our mission is to build trust in blockchains, Blending Safety and Security with an UNWAVERING COMMITMENT TO GROWTH AND INNOVATION.
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