Coinbase rolls out crypto compliance intelligence services

Coinbase, the largest cryptocurrency exchange in the United States, has launched a series of new tools to help financial institutions with their crypto compliance procedures.



The company announced "Coinbase Intelligence" on April 28, claiming that it would deliver crypto compliance at scale.


The company went on to say that it was particularly familiar with the difficulty of keeping up with worldwide standards and that it wanted to ensure that everyone could safely engage in the crypto business.


The tools will handle the compliance needs of "financial institutions, crypto firms, law enforcement agencies, and organizations new to crypto," according to the announcement.


Coinbase Know Your Transaction (KYT), a transaction screening tool, is included in the new set of technologies.


Financial institutions and crypto enterprises would be able to "proactively manage risk based on our patented risk assessment algorithm," according to the company.


To automate real-time transaction monitoring, the KYT service can be used as an API (application programming interface). The idea is to keep bad actors and bogus transactions at bay.


In practice, bad actors would use a service like Tornado Cash to mix or obfuscate transactions.


Users can also receive warnings to enable proactive risk management if their risk profiles change, as well as scan transactions for anti-money laundering flags.


The company's analytics software has been renamed "Coinbase Tracer." The technology, which has previously been utilized by governments and law enforcement organizations, now connects the activity to real-world entities in order to depict crypto-asset flow.


With risk scores and warnings, it may also be used to reduce fraud, explain counterparty risk, and help highlight AML problems.


The organization came to the conclusion that it is on a quest to meet future compliance challenges.


“At Coinbase, we’ve championed the importance of growing the crypto market in a fair and compliant manner in order to fuel innovation and expand economic freedom for everyone.”