Dash Partners with Intelligence Firm BlockchainIntel to Forster Trust in Blockchain

Dash Partners with Intelligence Firm BlockchainIntel to Forster Trust in Blockchain

It is becoming increasingly important for businesses engaged in the trade of cryptocurrencies to comply with regulatory requirements as blockchain technology becomes more mainstream.

Centralized exchanges for such digital assets are now bearing the brunt of the evolving regulatory environment as more lawmakers experiment with novel laws to regulate the space. The most important of considerations in these new laws are protecting against the use of cryptocurrencies in money laundering as well as financing terrorism. It is still hard to ensure that such activities are not carried out through these decentralized networks but some upcoming companies are taking a crack at this.

BlockchainIntel is one such company that is spearheading the introduction of intelligent transaction monitoring solutions to allow exchanges to better report on the transactions carried out by their users. When effecting a transaction, one important factor to consider is the trustworthiness of the transacting partner and the provenance of the funds being traded or exchanged. Now, so far most decentralized networks could not provide such information to exchanges let alone individual traders and transaction partners. However, BlockchainIntel aims to change that. The intelligence firm provides an automated way of identifying risk and providing the evidence needed to establish trust.

On Wednesday, the company announced a partnership with leading payments and e-commerce digital currency Dash that will enable the firm to “provide exchanges with new compliance reporting that addresses increasing regulatory requirements,” according to an announcement post.

Dash coins

Dash is itself a more private network compared to Bitcoin on which it is based. It allows two parties to send and receive funds between each other anonymously through a feature called PrivateSend. The partnership does not compromise the PrivateSend feature according to Karen Hsu, CEO of BlockchainIntel. The partnership will instead aid the effective reporting of transactions and help in identifying the risk of each transaction.

“We are excited to work with Dash, exchanges, and companies that trade or process payments in digital currencies to help safeguard interactions in their networks,” said Hsu adding that their goal as a company “is to provide people, companies, and regulators a way to identify higher-risk transactions that lead to increased trust in and continued adoption of digital currencies.”

Ryan Taylor, the head of Dash Core Group expressed his approval of what BlockchainIntel. He also said in a statement that,

“We are happy that our partner BlockchainIntel can address new exchange reporting requirements aimed at preventing money laundering and fraud.”

Taylor pointed out an example of exchanges such as social trading platform eToroX which lists Dash. With the use of the intelligence gathered through BlockchainIntel’s software, the exchange will be able to report to regulators on the transactions that are risky. This basically means that more regulatory compliant exchanges and businesses will now have no reason not to list Dash as they will be able to comply with the law enforcement requirements.