Blockchain security firm CipherTrace has launched the world’s most robust cryptocurrency tracing capability that aims to reduce some of the mistrust that thrives in the industry.
According to the announcement, the California-based firm will add the most comprehensive digital asset tracing facility to its cryptocurrency intelligence wing, with ability to trace more than 700 tokens. The new development comes just in the wake of increased regulation and fear regarding money laundering and terrorism financing, making the facility a viable option for tracking crypto-asset movement.
The report further reveals that it’s already possible for clients to track more than 87 percent of the volume of the first 100 digital currencies. CipherTrace uses the complex proprietary algorithms to access the previously unreachable blockchain information. The company commands 522 million attribution data points including accounts type, contract types, account holders, contract owners, and other metadata on crypto addresses.
Speaking about the facility, CipherTrace CEO Dave Jevans stated in a report:
“Only by helping virtual asset service providers rid their networks of criminals and terrorists will the industry achieve the level of trust required for widespread adoption and government acceptance.”
To close cryptocurrency money laundering gaps, we must expose more of the true number of illicit transactions that occur across the entire ecosystem. This platform expansion does just that by providing regulators, exchanges, and investors visibility into more than 87 percent of the virtual asset market trading volume,” Clegg said.
State Fear on Digital AssetsWhile supporting the blockchain initiative, governments worldwide remain paranoid on the use of cryptocurrencies. The main worry is tax avoidance, but many governments also believe that crypto assets could be used to fund evil activities such as narcotics and terrorism. Left unchecked, these activities could get out of hand with support from politicians that support them.
CipherTrace CTO Shannon Holland echoed the same sentiments, adding that the development and implementation of the tracking facility involved intense work and technological breakthroughs for the last four years. The company also worked hand in hand with regulators and investigators in the crypto space which as of now is revealing the market work as well.