Robinhood to partner with Chainalysis ahead of crypto wallet launch
Ahead of its rollout of crypto wallets, Robinhood is onboarding analytics tools from Chainanalysis, a leading crypto intelligence company.
As of now, Robinhood allows its users to buy and sell crypto, however, it does not allow them to withdraw their holdings from the platform without exchanging it for fiat currencies.
Back in September, Robinhood confirmed it would change this, allowing users to move their crypto tokens off the exchange as they please, similar to rivals such as Coinbase.
According to Robinhood, there are currently 1.6m people on its waiting list for a wallet.
According to Robinhood, there are more than 1.6 million people currently on the waitlist for its crypto wallet https://t.co/MI6J75HIoU— Cointelegraph (@Cointelegraph) December 13, 2021
Among the many challenges in making the change was the matter of regulations, which is where Chainalysis comes in.
“The executive team has spent significant resources and capital to embed that principle into every level of the organization," Ben Einstein, Robinhood Crypto's head of partnerships, said in a statement. "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 policymakers in a collaborative manner.”
Specifically, Robinhood will be making use of Chainalysis KYT and Chainalysis Reactor.
Chainalysis flags risky transactions in real time, noting wallet addresses that have previously been associated with illicit activity.
On the other hand, Chainalysis Reactor visualizes chains of transactions, which is handy for due diligence checks.