CipherTrace, a blockchain-focused forensic company, has revealed a new tool that allows decentralized exchanges (DEX) to comply with the OFAC's (the Office of Foreign Assets Control) regulatory requirements.
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According to an announcement, the new tool named CipherTrace DeFi Compli is a compliance solution based on Chainlink that enables DEXs and decentralized finance (DeFi) applications to abide by OFAC sanctions requirements.
CipherTrace CEO, Dave Jevans, says the $40 billion locked in DeFi protocols puts an "even bigger target on DeFi exchanges and protocols."
"CipherTrace's DeFi Compli regulatory compliance oracle on Chainlink can support DeFi protocols in achieving the compliance needed to ensure crypto’s long-term viability," he added.
CipherTrace will broadcast its API data via the Chainlink node onto blockchain networks and sign CipherTrace’s data on-chain. CipherTrace’s AML data will be streamed directly to smart contracts. With this data, blockchain developers can build data-driven products that are suitable for institutions and governments alike, the company said.
Earlier in March, CipherTrace revealed its regulatory compliance solution for cryptocurrency exchanges, banks and OTC trading desks called "CipherTrace Traveler." The new product, compatible with the TRISA standards (Travel Rule Information Sharing Alliance), allows trading platforms to automatically check external digital wallets, making it possible to safely share personally identifying information only with verified sources.
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