Nets, the Nordic-based provider of payments, cards and information services has announced a partnership with Chainanalysis, a provider of Anti-Money Laundering software for Bitcoin. Chainalysis’ analysis tool will become part of the Nets Fraud & Disputes Services portfolio to help banks discover and identify fraudulent payments.
More and more companies are choosing to accept blockchain-based currencies, such as Bitcoin, as a means of payment. However, digital currency can be a challenge for banks to facilitate, as they have to be able to document that the money complies with legislation and has not, for example, been used in connection with criminal activities.
This can be a particular problem among fintech start-ups, where digital currencies are more strongly represented than in more traditional companies. These start-ups can face a challenge when it comes to finding a bank that is capable, in terms of risk, of facilitating digital currency payments.
Michael Grønager, co-founder and CEO of Chainalysis said:
“Collaborating with Nets in this way gives us a sound platform from which to extend our tools to the Nordic banks. Many of them are keen to be able to have their customers’ Bitcoin transactions validated.”
Head of Fraud & Dispute Services at Nets, Kati Rintala said:
“Several of our customers among the Nordic banks have been looking for an effective tool to assist them in complying with legislation. In fact, I believe many banks have held back on facilitating Bitcoin payments because they didn’t have the tool we are now able to offer them.”
Digital currencies such as Bitcoin carry a lot of history with them every time they are transacted, as data is stored in the blockchain. This is comparable to the ability to trace the serial number of a banknote and view previous transactions involving it. Therefore, with the right tools, it is possible to analyze what types of transactions have previously been completed using the currency in question.