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With over $2 billion in annual trading volume in crypto currency, our client has grown to become one of the largest OTC trading desks in Asia. However, with this massive reach and strength come equally daunting risks.
Our client is a quantitative proprietary trading firm, with over $2 billion in annual trading volume in cryptocurrency, and has grown to become one of the largest OTC trading desks in Asia, with a strong corollary presence in the USA, China, and beyond. However, with this massive reach and strength come crypto-related risks.
The trading firm realized they needed a solution to reinforce their cryptocurrency AML/KYC regulatory compliance and infrastructure, and bring greater security and transparency to the digital asset economy.
The cryptocurrency industry’s staggering growth came with a proportionate emergence of new regulatory challenges. Over $10.5 billion in cryptocurrency was stolen by illicit actors in 2020 alone, with about $8 billion more circulating in the black market, mixer, tumbler, DeFi, DEX, NFT, and similar cryptocurrencies.
Government bodies like FinCEN and OFAC have introduced new regulations in 2021, all the while cracking down on VASPS that lack adequate AML/CFT programs, even for decade-old transactions.
Regulators took this meteoric rise as a call to action. Government bodies like FinCEN and OFAC have introduced new regulations in 2021, all the while cracking down on VASPS that lack adequate AML/CFT programs, even for decade-old transactions. In fact, just in February of 2021, payment provider Bitpay settled over $500,000 in OFAC charges when illicit transactions were discovered on their platform that started as far back as 2012. The company faced a maximum fine of over $600 million.
With this in mind, our clientdecided to take a proactive approach to AML (Anti Money Laundering) regulatory compliance and infrastructure security, in the hopes of ensuring a bright future for the trillion-dollar digital asset economy.
Before engaging with AnChain.AI, our clientwas very hesitant to expand their business and recruit new clients. “As we have more clients onboarded we need to hire more people to closely monitor the addresses which increases our compliance costs,” said the firm's founder. “After we engaged AnChain, we felt confident and actively accelerated our onboarding of new customers.”
The firm traditionally manually input each of their clients’ addresses into their AML database and blockchain to make sure their on-chain assets flow are legitimate. But ever since onboarding with AnChain, the process has been streamlined dramatically.
"With AnChain securing our compliance and AML, we are able to achieve our trading volume and number of customers goals last year."
“We use the CISO product to continuously monitor our counterparties and customers’ wallets,” said the founder. “We like the Address Management feature to allow us to put all our clients’ addresses into the monitor portfolio which continuously monitors the flow and activities and gives us real time alerts if any of the addresses has been associated with suspicious trading activities.”
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