Huobi Group, the parent company of the Huobi crypto exchange, announced on Monday the launch its proprietary on-chain transaction monitoring analytics tool.
Dubbed Star Atlas, the monitoring tool will enhance the crypto exchange’s KYC and AML compliance with various regulators.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
Mentioning the development, Ciara Sun, VP of the global business of Huobi Group, said: “It’s estimated that only a small percentage of cryptocurrency transactions are illicit, but any incident—regardless of size—is a stain on the entire industry. As one of the most active crypto exchanges on the market, we see it as our responsibility to take a leading role in preventing the minority of bad actors from ruining it for the vast majority that follows the rules.”
The press release shared with Finance Magnates also detailed that the monitoring tool will flag high-risk transactions, thus proactively detecting fraud, money laundering, and other illicit activities.
Notably, Star Atlas will flag transactions in real-time using several techniques like monitoring the on-chain flow of assets, event correlation analysis, identity authentication, and malicious address labeling, to single out and track illicit activities.
Taking business in-house
The demand for blockchain analytics tools was always in high demand in the crypto arena. Though companies like Chainalysis and Chainlink raised in reputation, exchanges are now moving towards the development of their proprietary solutions.
Just last month, Bitfinex launched a similar market surveillance tool even though it was benefiting from Chainalysis’ services.
“Star Atlas is a tool we are very proud of as it encapsulates and maintains the most important core values at Huobi. We have robust security on our platforms, we put safety first for our users, and our platform always makes our best efforts to provide a safe, secure trading experience for our users,” Sun added.