Chainalysis, a New York-based Blockchain analytics firm, has issued an official statement illustrating that the company does not amass or sell users’ personal data when it offers its services to Cryptocurrency exchanges. Focused on Blockchain-based solutions, Chainalysis provides a range of technology, including its proprietary, Know Your Transaction (KYT) tool which allows companies, governments, and law enforcement entities to supervise Blockchain transactions and track money laundering or terrorist financing like supposed illegal activities.
It was reported that allegations over such firms may be circulating their clients’ user data that surfaced last week in the middle of Coinbase’s controversial acquisition of Blockchain analytics firm Neutrino. However, to justify that acquisition, the company executive said that their earlier intelligence tool providers were ostensibly selling its users’ data to third parties. Hence, as the executive didn’t clearly identify those intelligence firms by name, Chainalysis has evidently responded with clarifications that the company doesn’t require or store any personal data in order to conduct transaction analyses. The company stated that for using its proprietary KYT tool, exchanges submit their transaction data to automate the transaction monitoring process. If any link from a transaction generated it must be made from outside the Chainalysis because the company doesn’t collect any personally identifiable information from exchanges.
In addition, Chainalysis statement continues that its focus is on flagging transactions on the basis of risky indication behaviors like destination address noted to be illegitimate entities. Thus, its Blockchain-based analytics tools are designed to monitor service-level transaction data, not to label individual users’ wallets.