Chainalysis and Paxful are partnering to improve the user experience of P2P cryptocurrency exchanges.
Paxful, a P2P cryptocurrency exchange itself, is taking advantage of Chainalysis’ know-your-transaction technology to keep an eye on the goings-on of the platform.
“Paxful uses Chainalysis KYT (Know Your Transaction) to monitor its platform’s cryptocurrency transactions in real-time and Chainalysis Reactor to build investigations when it detects suspicious activity. Together, these tools amplify Paxful’s compliance expertise and set a new compliance benchmark for P2P cryptocurrency exchanges globally,” a post from the group notes.
This is interesting, considering that the majority of P2P exchanges can be seen as risky, according to Chainalysis – a group that investigates the space. Thanks to that report, Paxful did whatever it could to increase its security via know-your-customer (KYC) and other policy changes.
Speaking on the mater is John Dempsey, the VP of Product and the analysis firm:
“Compliance is the key factor for establishing trust in cryptocurrency exchanges. By adopting a case-by-case approach to evaluating P2P venues, we are helping to broaden trust and transparency across the cryptocurrency ecosystem.”
Overall, Paxful will be able to analyze and monitor transactions going throughout their network, no matter how large. This will ensure higher security for all users on the platform.