Chainalysis integrates the Lightning Network for Bitcoin (BTC) transactions

Chainalysis will soon support the Lightning Network

The company Chainalysis will soon integrate the Lightning Network to its compliance software in order to analyze Bitcoin transactions (BTC) on this network.

Chainalysis is a company specialized in blockchain data analysis and the compliance of exchange platforms and other cryptocurrency-related entities. The latter has developed software that allows its clients to analyze blockchain transactions, in particular to flush out money laundering operations.

The addition of the Lightning Network will therefore extend the analysis services of the company. This network allows Bitcoin followers to make near-instant transactions with lower commissions.

Thus, this integration will allow customers who use the KYT service (Know Your Transaction – for real-time monitoring of transactions) to authorize deposits and withdrawals of BTC from a Lightning node.

“Chainalysis exists to build confidence in cryptocurrencies to promote greater financial freedom with less risk. The Lightning Network addresses many challenges that prevent the use of the Bitcoin protocol for micropayments and other types of transactions that support financial inclusion. By enabling our customers to support Lightning transactions in a compliant manner, we hope to increase the popularity of the network and help it grow, ” said Pratima Arora, Chief Product Officer of Chainalysis.

Affected customers through this support are in particular the exchanges, qualified as service providers on digital assets (VASP for Virtual ATsset Sservice Providers) according to the new directive of the Financial Action Task Force (FATF).

👉 To Read – What is the Lightning Network?

Support to ensure global compliance

This compliance measure aims to enable Chainalysis customers who offer digital asset services to support transactions securely from the Lightning Network.

In this regard, the KYT service offered by Chainalysis aims to pre-select Lightning withdrawals and alert questionable transactionsor even unusual behavior.

Thus, thanks to this new service which will be set up in February 2022, Chainalysis users will now have access to a significant tool in terms of compliance and optimal for their respective products.

👉 To discover – Bitcoin (BTC) – The capacities of the Lightning Network continue to reach records

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About the Author : Anthony bassetto

It was in 2017 that I discovered cryptocurrencies and blockchain technology. Also, I would like to share with you the news of this sector, which is in full swing, so that you can be up to date with the latest news.
All articles by Anthony Bassetto.

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