Cryptocurrency: Robinhood, Chainalysis team up for compliance on crypto wallet launch

Robinhood, an American financial services company headquartered in Menlo Park, California, has tapped a Chainalysis software company based in New York, for a partnership deal. The trading platform will take on Chainalysis’ “Know Your Transaction” (KYT) and Chainalysis Reactor ahead of its crypto wallet launch.

The software firm’s KYT, a monitoring compliance solution, and Reactor investigations software are going to be used by Robinhood Crypto to fulfill requirements for the launch of its own crypto wallet. Chainalysis will provide data and tools for trading needed before the launch.

According to CoinTelegraph, Chainalysis confirmed on Monday, Dec. 13 that its integrated partnership with Robinhood Crypto will help it comply with things needed before it can roll out its crypto wallet in early 2022. Additionally, the crypto trading firm will also use Chainalysis’ certification programs to successfully complete its compliance.

“Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner,” the publication quoted Ben Einstein, Robinhood Crypto’s head of partnerships, as saying in a statement.

A lot of companies and government agencies also secure the services of Chainalysis to track both legitimate and unlawful transactions involving cryptocurrencies. This just signifies that the company is reliable in providing the needed analytics for various reasons. The data it will provide will also allow users to trade crypto safely and securely.

As reported by DailyCoin, Robinhood Crypto implements a strict “Safety First” policy. Einstein revealed they had invested a huge amount of money and resources in making sure that this policy was applied at all levels of the organization. In fact, this is one reason why they have partnered with Chainalysis.

“We have a strong ‘Safety First’ policy which guides our decision making and our customer’s safety as our number one priority,” Einstein said in another report.

Jonathan Levin, Chainalysis’ co-founder and chief strategy officer, shared that their team is excited to be working with Robinhood Crypto. It was noted that this partnership is likely to gain the attention of the public more and will eventually increase the interest in cryptocurrencies.

Meanwhile, Robinhood Crypto said that over 1.6 million individuals have signed up and are on the waitlist for its crypto wallet. This digital wallet will allow deposits and withdrawals of Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and other digital tokens.