Robinhood Turns to Chainalysis for Data, Compliance Tools
Robinhood will use Chainalysis software to monitor crypto trades and meet compliance requirements as it prepares to roll out a crypto wallet.
Crypto tracing firm Chainalysis said it will provide data and compliance tools to Robinhood’s online crypto trading service, Robinhood Crypto.
- Robinhood (Nasdaq: HOOD) will use the software to meet compliance requirements and help keep accounts safe, Chainalysis said in a blog post Monday.
- Robinhood Crypto will use Chainalysis KYT to flag “risky and illicit transactions” in real time, and Chainalysis Reactor to help with due diligence into potential suspicious activity.
- Robinhood has said it expects to make its long-awaited crypto wallet available to all customers by early 2022. The wallets have a waitlist of more than 1.6 million.
- As consumer access to cryptocurrency grows there is increased attention toward regulatory compliance standards.
- “Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner,” said Ben Einstein, head of partnerships at Robinhood Crypto.
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