Chainalysis adds support for 10 ERC-20 tokens; support for XRP to be included

Quick Take

  • Blockchain analysis firm Chainalysis now provides AML compliance support for several ERC-20 tokens, including Maker, Dai, 0x, OmiseGo, Basic Attention Token, and others
  • Over the next three months, the firm will add more tokens, including XRP, Doge, Ethereum Classic, and privacy coins such as Dash and ZCash (unshielded) 
  • The firm said it is also providing on-demand services to investigate tokens that it does not cover, and it hopes to cover over a total of 39 ERC-tokens by the end of the year 

Blockchain analysis firm Chainalysis just added support of ten ERC-20 tokens to its signature AML solutions, as cryptocurrency firms ramp up its compliance effort amidst regulatory uncertainty.

Announced on Thursday, the ten ERC-20 tokens include Maker, Dai, 0x, OmiseGo, Basic Attention Token, and others. Chainalysis will also provide on-demand services to add support tokens that it currently doesn’t cover. Over the next three months, the firm will expand its support to XRP, Doge, Ethereum Classic, and privacy coins such as Dash and ZCash (unshielded). 

Chainalysis co-founder and CSO Jonathan Levin told The Block that the addition is to meet heightened market demands and more hacks related to ERC-20 tokens. 

“There clearly are a lot of experimentations and demand coming from the market, on what can be tokenized and traded, but at the same time… we also see that many of the recent exchange hacks that we have been tracking have been ERC-20 tokens stolen,” said Chainalysis co-founder and CSO Jonathan Levin.

Recently, cryptocurrency exchange OKEx Korea announced that it would delist five privacy coins, including Dash and Zcash. The announcement followed the issuance of FATF’s crypto guidelines in June, which requires exchanges to collect and transfer customer information during transactions. 

According to Levin, as firms are trying to strengthen their AML effort, the ability to track activities of various ERC-20 tokens, which are becoming increasingly popular, is critical. Levin noted that there are over 200,000 ERC-20 tokens right now and “each one of those tokens represents a community around that token, a use case.” 

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