Paxful Partners with Chainalysis to Integrate Suspicious Transaction Monitoring Solutions.
The popular peer-to-peer cryptocurrency trading house in Africa, Paxful has partnered with Chainalysis to control suspicious transaction, fighting too many scam cases recorded at Paxful.
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Chainalysis will be implementing two security measures utilizing it’s security service. The primary security measure is the chainanalysis KYT, Know Your Transaction, an acronym similar to KYC, Know Your Customer service.
This means that you can monitor and block suspicious transactions in real time. For instance, a transaction going to an address marked as high-risk address will be flagged as suspicious transaction. Same goes for a transaction belonging to darknet assets or financing of terrorism.
The second security measure from chainalysis is the chainalysis Reactor. This Reactor will be used to research or investigate suspicious behavior or exercise from users on Paxful.
“Paxful will use the Reactor to conduct deep investigations while the Know Your Transaction, KYT, will be used to monitor illicit transactions.”
Earlier before now, it’s common for P2P exchanges to make anonymous transactions. Many of these exchanges do not even allow users to create account in other to process transactions.
This is a call on similar cryptocurrency exchanges to adopt this security measures in other to keep the cryptocurrency space safe from bad actors.
“Through working with Paxful, Chainalysis is evolving its policy and will evaluate P2P exchanges on a case-by-case basis before labelling them as risky, just as it does for other cryptocurrency exchanges” Youssef – CEO Paxful.
Paxful has been labelled as a scam zone by too many Nigerian customers in the past because of the less security measures in place to fight bad actors. With this new development, users will be rest assured that their transactions are safe.