ConsenSys is releasing a compliance service to help exchanges and decentralized finance (DeFi) projects analyze trading activities for tokens issued on Ethereum.
Crypto exchanges are subject to various forms of know-your-customer rules meant to deter money laundering and other illegal transactions. To satisfy these requirements, many of them rely on outside analytics firms like Chainalysis, Elliptic, and CipherTrace to identify users and tokens that are potentially linked to criminal activities.
According to Bloomberg, ConsenSys's new service will focus on DeFi, and will be able to track user transactions for over 280,000 tokens launched on the Ethereum network.
“There are more and more people building decentralized apps that need this as a Lego piece,” ConsenSys’s global fintech co-head Lex Sokolin told Bloomberg. “What we are trying to do is make activity on the decentralized financial infrastructure much more safe, transparent, much easier to trace.”