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.

Read more: There's a Lot of Thefts Happening