Chainalysis, a platform that offers “cryptocurrency investigation and compliance solutions” to regulators and government agencies, has just announced investigation and compliance support for Dash and Zcash, according to a blog post from the group.
Why is this important? Well, considering Zcash and Dash are privacy tokens, and account for “over $1.5 billion of reported daily trading volume,” there’s likely to be all sorts of illicit activity and trades going on. Chainalysis wants to help prevent that.
The blog post claims that Chainalysis will be able to investigate potentially illegal transactions “in a way that balances users’ privacy needs with the industry’s compliance needs.”
Part of how they can do this is because Zcash and Dash’s privacy solutions are both optional. In fact, both are used majority for traditional transactions, rather than private ones. This ensures that groups like Chainalysis can investigate them while still remaining compliant – all without invalidating user rights on the networks.
Chainalysis can look at mixed transactions, analyze CoinJoin techniques, and more. On top of this, they can look at the inputs and outputs of private transactions and put them together, and of course, the groups can still look at the non-private transactions, too. Again, the majority of transactions on both networks are public, after all.