Robinhood partners with Chainalysis ahead of crypto wallet launch

Blockchain analytics firm Chainalysis will partner with Robinhood to provide data and tools for trading before the app launches its crypto wallet.

In an announcement Monday, Chainalysis said that the integrated partnership with Robinhood Crypto will help the trading app meet compliance requirements ahead of the launch of its crypto wallet, which is expected to roll out for all users in early 2022. According to Robinhood, the platform will adopt Chainalysis’ Know Your Transaction, the company’s compliance tracking solution, in addition to Chainalysis Reactor, its investigative software. The business application also said that its teams would use Chainalysis certification programs to achieve compliance.

“Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policy makers collaboratively,” said Ben Einstein, Director of Partnerships. from Robinhood Crypto.

According to Robinhood, more than 1.6 million people are on the waiting list for a wallet, which will support the deposit and withdrawal of Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and other tokens. The trading app has been testing its digital wallet feature since it was first announced in September.

Many government agencies and private sector companies employ Chainalysis as a solution to track both legitimate and illicit crypto transactions. When the US Treasury Department announced that it would impose sanctions on the Czech Republic and Russia-based company Suex OTC, it cited an investigation by the analysis firm.

Related: BitMEX turns to Chainalysis to solve legal problems, or at least soften the CFTC blow

After going public on the Nasdaq in July, Robinhood’s (HOOD) share price has declined steadily from an all-time high of $ 70.39 on August 4 to $ 21.83 at press time, a drop of about 70%.