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  • Bittrex integrates Chainalysis KYT to weed out illegal activity.
  • The software ensures compliance with FATF requirements.

The US-based cryptocurrency exchange Bittrex has adopted the software that will allow to identify and flag suspicious transactions in real-time. The tool – Chainalysis KYT – is provided by a blockchain start-up Chainalysis.

The software alerts the system about illegal transactions in 15 cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, ERC20-tokens and stablecoins.

It is worth noting, that in June, the Financial Action Task Force (FATF) tightened the requirements to cryptocurrency industry regulation and required that cryptocurrency exchanges in 37 member countries started tracking and exchanging customer details on every transaction handled.

Bittrex complies with the requirements, but  Chainalysis KYT (Know Your Transaction) provides additional functionality due to the integrated database of suspicious addresses, according to Bittrex representative.

“The key to supporting a large exchange like Bittrex is building features that enable them to automate their compliance process, prioritize their workflow, and customize their alerts to speed up how fast they can do due diligence,” Jonathan Levin, Chainalysis’ chief security officer, commented.

While the software flags the potentially illegal transactions, a human compliance analyst at Bittrex still needed to determine if the threat is valid and file a report with relevant authorities.