Lendingblock has appointed Chainalysis as its corporate Anti-Money Laundering (AML) launch partner ahead of the implementation of global regulatory guidance.
The news was shared with Coin Rivet in a press release. Lendingblock is an open exchange for borrowing and lending digital assets, enabling users to enter into fully collaterised crypto-to-crypto lending agreements.
Chainalysis offers cryptocurrency investigation and compliance solutions to global law enforcement agencies, regulators, and businesses as they work together to fight illicit crypto activity.
The move means Chainalysis will be working with Lendingblock to implement AML technology and best practices in preparation of the impending global regulatory guidance from the Financial Action Task Force (FATF).
The press release states: “Lendingblock is committed to meeting the stringent and comprehensive compliance requirements set by its external regulator, the Gibraltar Financial Services Commission, and to adopt global best practices from the traditional capital markets space where regulation of digital assets is forthcoming.”
In partnering with Chainalysis, Lendingblock is augmenting its existing in-house Know Your Customer (KYC) standards and enforcing due diligence processes, thereby protecting its institutional client base including hedge funds, trading houses, exchanges, and market makers while also supporting the progression of regulatory frameworks.
The FATF is believed to be issuing its guidance in the coming weeks for areas that fall under its jurisdiction – which consists of more than 180 countries – to start regulating the cryptocurrency markets.
“It is important to create a secure and transparent lending exchange that not only meets the needs of our regulator, but also our institutional clients’ trust,” said the CEO of Lendingblock Steve Swain.
“Partnering with Chainalysis helps us ensure top-of-the-line compliance standards for our clients.”
Interested in reading more Lendingblock-related stories? Discover more about its recent report which revealed an increased institutional desire to borrow and lend digital assets.