U.S. compliance startup Chainalysis expands tracking service to 10 cryptocurrencies

NEW YORK (Reuters) - New York-based startup Chainalysis said on Wednesday it has expanded its real-time transaction monitoring service to cover 10 cryptocurrencies as part of an initiative to help reduce global anti-money laundering activities.

The launch of additional cryptocurrencies comes as investors await global regulatory guidance that will require automated transaction monitoring for cryptocurrencies that exchanges and financial institutions support, the company said in a statement.

Chainalysis helps law enforcement, regulators and businesses including banks track flows of cryptocurrency to spot illicit activity.

Since a decentralized currency system like bitcoin is not governed by any entity or regulator, it is susceptible to illegal activities such as money laundering.

Starting on Wednesday, Chainalysis customers can track Binance coin, Gemini dollar, Tether, and USD coin on Chainalysis KYT (Know Your Transaction), the firm’s anti-money laundering service.

Over the past year, the company also rolled out support for ether, bitcoin cash, litecoin, trueUSD, and Paxos standard, in addition to its original bitcoin capabilities.

“We have been investing for the last year to re-architect our entire platform to support multiple blockchains in the face of global regulation,” Jonathan Levin, co-founder and chief operating officer of Chainalysis, told Reuters in an interview.

“Global regulation of the cryptocurrency industry is inevitable for this truly borderless financial system to achieve mainstream adoption,” he added.

Levin noted that inter-governmental and domestic entities will provide clarity on the regulation of virtual assets including cryptocurrencies this year. And one of the recommendations is that companies automate the monitoring and processing of transactions, he said.

Chainalysis recently raised $6 million in funding from Japanese financial group Mitsubishi UFJ Financial Group Inc and venture capital firm Sozo Ventures. The investment follows a $30 million fundraising round from venture firms Accel and Benchmark in February.

Reporting by Gertrude Chavez-Dreyfuss in New York; Editing by Matthew Lewis