KPMG partners with Chainalysis on crypto compliance

24 November 2023 Consulting.ca 2 min. read

KPMG Canada on Wednesday announced a strategic agreement with Chainalysis, a New York-based provider of cryptocurrency investigation and compliance solutions.

Under the collaboration, KPMG and Chainalysis will provide monitoring, support, governance, and risk management to crypto exchanges, financial institutions, law enforcement, and government agencies. The firms will together help organizations detect and prevent illicit activity related to cryptoassets and adhere to anti-money laundering regulations.

KPMG is the first Canadian professional services firm to partner with Chainalysis on forensic investigation services.

“By teaming up with Chainalysis, KPMG clients can benefit from Chainalysis' proprietary blockchain data monitoring technology, resulting in improved identification of potentially criminal activities and faster response times," said Enzo Carlucci, national forensic leader at KPMG Canada. "Addressing and reporting criminal activities quickly can be challenging for organizations, but this collaboration helps address that."KPMG partners with Chainalysis on crypto complianceChainalysis is a blockchain data platform that provides data, software, services, and research to governments, exchanges, financial institutions, and cybersecurity firms. The company’s data has been used to solve several high-profile criminal cases in the crypto space, according to Chainalysis’ website.

Chainalysis has over 850 employees, according to LinkedIn, and is backed by investors such as Accel, GIC, and Ribbit.

“By teaming up with one of the Canada's largest professional services firms, our clients can leverage the expertise of KPMG's trusted forensics and cryptoasset advisory professionals to establish effective know your transaction (KYT) rules, stronger anti-money laundering protocols and robust investigation strategies," said Jonathan Levin, Chainalysis cofounder and chief strategy officer.

Binance, a large Chinese-origin crypto exchange, earlier this week pleaded guilty to US federal charges – admitting to money laundering, among other offences – and agreeing to pay over $4 billion in fines.