Crypto Compliance: Deloitte Partners with Chainaanalysis for Data and Analytics Services

Crypto compliance can only improve if two of the top players in finance and blockchain analytics collaborate to provide bespoke crypto-related compliance and risk investigation services.

On July 25, Chainaanalysis, a leading blockchain analysis company, announced a strategic alliance with the world's top accounting firm Deloitte to help solve compliance challenges in the encryption ecosystem. The strategic alliance comes at a time when regulators are raising expectations of the crypto ecosystem and raising regulatory standards.

Deloitte and Chainalysis join forces to address compliance challenges in the crypto ecosystem

Chainaanalysis and Deloitte seek to meet growing demand as financial institutions develop digital asset risk management strategies and global regulators and law enforcement clarify regulatory guidance.

The partnership between Deloitte and Chainaanalysis will help their mutual clients leverage Chainaanalysis' blockchain datasets and custom analytics software along with Deloitte's services to manage risk, investigate threats and enhance compliance.

A spokesperson for Chainaanalysis revealed that the two companies have worked for the alliance for many years, aiming to help more organizations embrace blockchain technology.

Thomas Stanley, president and chief revenue officer of Chainalysis, said in the announcement that the target customers of this cooperation are mutual customers of both parties, including regulators, law enforcement agencies and financial institutions.

This collaboration will help identify transformation gaps, accelerate large-scale mission success, reduce risk and increase revenue, Stanley said.

Tim Davis, Deloitte Blockchain and Digital Assets Advisory Practice Leader and Deloitte LLP principal, also commented on the development. Davis said that as the adoption of digital assets continues to increase across industries, Deloitte is committed to advising clients on the best approaches for risk management, analytics use and regulatory compliance.

Davis explained that the new partnership with Chainaanalysis shows Deloitte’s interest in leveraging the analytics firm’s digital asset innovations to the benefit of clients.

Accelerate cryptocurrency adoption through compliance

In a document detailing the alliance, Deloitte highlighted some of the challenges law enforcement agencies face when people use cryptocurrencies to disguise transactions and launder money. The initiative aims to address the challenges of regulators, law enforcement agencies and financial institutions moving away from cryptocurrencies.

The financial auditing and accounting firm said its partnership with Chainaanalysis could help identify bad actors responsible for the actions and trace the flow of funds to high-risk or sanctioned entities.

The alliance program is initially rolling out in the United States, according to a Deloitte spokesperson. "But it's something other markets can easily adopt. We believe other global markets will follow suit," he said.

Chainaanalysis said it will work with Deloitte to enhance digital asset risk management, analytics, investigations, anti-money laundering/know your customer, and regulatory compliance.

It’s worth mentioning that Deloitte recently posted more than 300 job postings related to cryptocurrency, including 97 in the U.S. alone.