Consensys, an organization providing solutions to Ethereum based blockchain applications is ready to launch a compliance service that will assist various exchanges and decentralized finance (DeFi) projects to analyze and keep track of trading activities on Ethereum.
According to Bloomberg, Joseph Lubin, co-founder of Ethereum and head of Consensys, indicated that the company is looking forward to developing a product that would focus on the regulatory requirements of the know-your-customer, which has been a significant hurdle for various digital asset firms.
Compliance services have been a major issue in the past as the lack of standardized rules has led to various illegal activities in the industry. In order to avoid various money laundering transactions, various cryptocurrency firms have to rely on analytical firms such as Chainalysis and CipherTrace to identify users and tokens that are linked to criminal activity.
Lex Sokolin, ConsenSys’s global fintech co-head said,
“There are more and more people building decentralized apps that need this as a Lego piece. What we are trying to do is make activity on the decentralized financial infrastructure much more safe, transparent, much easier to trace.”
Since Consensys is focused on Ethereum, the new services launched by the organization would track up to 280,000 different tokens, those which are built on the ERC-20 or ERC-721 standard. According to their press release, the objective remains to implement a more stable and regularised compliance in crypto, usually tagged with the traditional payments sector.
Ethereum continues to be the development Hub
It is hard not to pin-point that the entire system continues to under Ethereum. Sokolin has mentioned last year that the improvement of the DeFi space in terms of functionality and now, compliance is highly important for the ever-improving space of Ethereum. When the number of unique numbers rose nearly up to 530 percent in 2019, according to DappRader report, Sokolin had stated,
“Providing robust AML/CFT compliance for Ethereum-based digital assets is a keystone step in bringing the institutional financial industry to decentralized finance. Code Compliance is the next module in our product suite to eliminate complexity and risk in using DeFi, and help any business benefit from using digital assets.”