KPMG Canada Teams Up With Chainalysis to Fight Crypto Frauds and Exploits

The duo will help companies adhere to crypto regulations and advance anti-money laundering compliance programs.

AccessTimeIconNov 22, 2023 at 12:15 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Canadian arm of Consulting giant KPMG is partnering with blockchain analytics firm Chainalysis to help companies fight the ever-growing threat of fraud and criminal activities in the digital assets sector.

Through the partnership, KPMG will aim to provide advanced blockchain monitoring, support, governance and risk management for its clients so that firms can adhere to evolving crypto regulations and advance their anti-money laundering compliance programs, according to a statement on Wednesday. "This collaboration will help to further solidify KPMG’s expertise in forensic investigations and cryptoassets and blockchain technology,” said Kunal Bhasin, partner and cryptoassets and blockchain co-leader at KPMG Canada.

The move comes as exploits and frauds in the digital asset sector have become more prominent and sophisticated. Globally, cryptocurrency-based illicit transaction volume hit an all-time high of $20.6 billion last year, according to the Chainalysis 2023 Crypto Crime Report. The sector has been plagued with sophisticated exploits such as wallet hacks and SIM swaps, with more recently, cryptocurrency exchange Poloniex losing about $114 million after hackers drained its hot wallets.

"Layering KPMG’s extensive knowledge and experience in cryptoasset financial crimes over our platform’s industry-leading risk capabilities will help provide organizations with a more comprehensive approach to mitigating fraud risks in crypto transactions,” said Jonathan Levin, Chainalysis co-founder and chief strategy officer in the statement.

KPMG Canada has been active in the cryptocurrency sector for a while. Last year, it stepped into the metaverse by opening its first collaboration hub between its U.S. and Canadian units. The firm also added bitcoin (BTC) and ether (ETH) to its balance sheet and purchased digital art from the World of Women (WoW) NFT collection.

Edited by Stephen Alpher.



Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.