Huobi launches on-chain analytics tool to monitor illicit cryptocurrency activities
Huobi Group, the parent company of one of the largest crypto exchanges, has launched an in-house blockchain monitoring tool known as Star Atlas to help identify illicit activity going in and out of their exchange. The service will aim to identify high-risk behaviors such as fraud and money laundering in real-time. Once accounts are flagged by the system they will be restricted from withdrawing assets until they provide further verification requirements
Why it matters
- By enhancing KYC and AML requirements, Huobi will appease global regulators making it easier to receive proper licensing across different jurisdictions. This comes at a time when Huobi plans on re-entering the U.S., one of the more difficult countries to operate in for a crypto exchange.
- According to a Chainalysis crime report, Huobi accounted for nearly a quarter of all illicit activity entering exchanges in 2019. With the introduction of Star Atlas, the firm should have similar tools used by Chainalysis to help identify and prevent this type of activity from occurring in the future.
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