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Robinhood teams up with Chainalysis to adopt its compliance and investigations solutions

By:
on Dec 13, 2021
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  • According to Chainalysis’ announcement, the blockchain investigation firm has partnered up with Robinhood.
  • The partnership will allow Robinhood to gain access to a number of tools and achieve regulatory compliance.
  • Chainalysis’ tools are advanced and precise, which is why it is commonly hired by companies and governments.

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Chainalysis, one of the leading blockchain analytics companies in the entire blockchain industry, recently announced a new partnership with none other than the trading app Robinhood. The partnership will allow Robinhood to tap into Chainalysis’ data, as well as its advanced tools for compliance and investigations.

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Furthermore, the new partnership emerged just as the trading app is about to launch its own, native cryptocurrency wallet.

Robinhood to gain access to Chainalysis’ data

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The new partnership was announced earlier today, December 13th. In it, Chainalysis revealed that the integrated partnership with Robinhood Crypto will allow the trading app to meet compliance requirements, which is of crucial importance since Robinhood is preparing to launch its digital currency wallet. The wallet will roll out in early 2022, and it will be available for all of its users immediately.

Robinhood also announced the move to its own community, saying that it will adopt Chainalysis’ advanced monitoring compliance solution called Know-Your-Transaction. In addition to that, Robinhood will also make use of the Chainalysis Reactor, which is an investigations software, and one of the best ones in the industry. Finally, Robinhood also plans to use Chainalysis’ certification programs, which will also play a role in the trading app becoming regulatory compliant as it delves deeper into the crypto sector.

Robinhood Crypto’s head of partnerships, Ben Einstein, said that Chainalysis is a perfect partner for reaching regulatory compliance, given how closely it works with regulators and law enforcement. The company has been using these connections to develop some of the best practices in the crypto industry.

This approach is also aligned with Robinhood’s own commitment to collaborating with lawmakers and offering safe services to its clients.

Robinhood and Chainalysis

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Robinhood noted that there is great interest in its crypto wallet and that there are more than 1.6 million people waiting in line to get it. The wallet will allow users to deposit and withdraw a handful of cryptocurrencies, including Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD), and other tokens.

The wallet was originally announced back in September, and ever since, Robinhood has been conducting various tests with the goal of making sure that everything is fully operational prior to launch.

As for Chainalysis, the company has been a leader in tracking crypto transactions, regardless of whether they are legitimate or illicit. As such, the company has been employed and pursued by various corporations, and even governments and their agencies.

For example, the US Department of the Treasury employed Chainalysis and its services when it decided to impose sanctions on the Czech Republic and Russia-based company, Suex OTC. Chainalysis conducted the research of the company’s on-chain dealings, which was crucial for the Treasury to come to a decision on how to proceed.

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