The cryptocurrency and blockchain analytics firm Chainalysis has partnered with the Paxful peer-to-peer exchange, This is reported by the Block.
Under the agreement, Paxful will gain access to the Know Your Transaction (KYT) and Reactor tools developed by Chainalysis. They help identify high-risk transactions and conduct further investigations into them.
This is the first experience for Chainalysis in the field of cooperation with a peer-to-peer cryptocurrency exchange.
Paxful, which accounts for around 25% of all P2P cryptocurrency activity, is currently the only P2P exchange Chainalysis currently works with. We are open to talking to other P2P exchanges.
Chainalysis stated that all peer-to-peer cryptocurrency exchanges are "risky in nature." As a justification, the company pointed to the decentralized structure of such platforms and the absence of the need to register accounts.
A Paxful spokesperson said that they are “investing heavily” in legal compliance and are using a “multitude of tools” to track cryptocurrency transactions.
Chainalysis tools were previously integrated by trading platforms such as Bitfinex, Binance, and Bittrex.