OKLink officially launches on-chain AML services

Author: OKLink

On September 11, 2023, the globally leading blockchain technology company OKLink Holdings (01499.HK, hereinafter referred to as "OKLink") officially launched its multifunctional on-chain anti-money laundering service: OKLink Onchain AML (anti-money laundering). As the largest provider of such regulatory technology (RegTech) platform in Asia, the AML service launched by OKLink can assist digital asset companies, DeFi projects, and financial institutions in achieving compliance and risk detection by analyzing address transactions and combining blockchain standards and security audit technologies.

The OKLink Onchain AML service attaches identifiers to blockchain addresses in the form of "tags," effectively detecting and identifying risky contracts, addresses, tokens, and illegal activities, helping users distinguish between addresses such as exchanges, MEV bots, smart contracts, hackers, and crypto whales. The integration of tag data with on-chain data analysis significantly enhances the capability of OKLink Onchain AML to provide automated and continuous transaction screening and tracking. Meanwhile, users can also customize the AML platform according to specific compliance procedures, risk policies, or other requirements.

As two core products of OKLink Onchain AML, KYT (Know Your Transaction) and KYA (Know Your Address) innovate on the traditional KYC services. KYT associates addresses with the real world, monitors the risks of deposit and withdrawal transactions, identifies malicious addresses, and generates alerts to meet the compliance and risk control needs of Virtual Asset Service Providers (VASP); KYA identifies, analyzes, calculates, and classifies the risk types of on-chain addresses and assists in digital asset investigations, providing preliminary screening of on-chain transaction risks to enhance the transparency of digital assets. Notably, KYT has already taken the lead in supporting detection functions for popular chains such as Base and Starknet.

Regarding the official launch of the Onchain AML service, Zhang Chao, Vice President of OKLink Group and Executive Director of OKLink Holdings, stated: "OKLink officially launches OKLink Onchain AML, leading the trend of transparency and security in the digital asset industry, reflecting OKLink's ongoing commitment to developing and providing intuitive, blockchain-based tools to help clients monitor risks and ensure compliance with the ever-changing regulatory environment. We look forward to providing comprehensive and tailored services for virtual asset service providers, financial institutions, project parties, and government and law enforcement agencies."

In terms of product functionality, Zhang Chao revealed: "OKLink has comprehensive analytical capabilities for mainstream global blockchains, currently covering over 170 various blockchain networks and possessing more than 3.4 billion address tags. Based on this, the OKLink Onchain AML service supports the tracing of all transaction histories recorded on all these blockchains. Virtual Asset Service Providers (VASP) can configure this to meet regulatory requirements in various jurisdictions; financial institutions can detect illegal activities such as money laundering, terrorist financing, fraud, and theft through the AML compliance solutions; DeFi and on-chain protocol project parties can detect and mitigate funding risks through custom alerts related to contract codes and funds associated with financial misconduct, sanctions, money laundering, terrorist financing, and other illegal activities; government agencies and law enforcement can more efficiently and conveniently identify, monitor, and investigate virtual asset transaction risks and financial crimes."

OKLink Onchain AML actively responds to the new VASP licensing regime implemented in Hong Kong on June 1, 2023. The new VASP guidelines aim to protect investors by implementing strict requirements and protective measures related to asset custody, customer asset segregation, and cybersecurity standards. As VASP needs to operate under the regulatory framework in Hong Kong, the region will place greater emphasis on meeting regulatory compliance requirements, including AML and on-chain transaction monitoring. "All of this aligns with the philosophy and mission of OKLink Onchain AML," Zhang Chao further explained.

According to official information, OKLink also provides a Web3 data analysis platform blockchain explorer and an on-chain investigation-focused data tool called Chaintelligence, continuously assisting in building compliance and security in the virtual asset field.