Coinfirm Integrating Chainlink to Bring its Anti-Money Laundering Solution to Multiple Blockchain Environments
LONDON, 28th October – Leading blockchain analytics and AML company Coinfirm will be using Chainlink’s market-leading oracle network to bring their AMLT Oracle, an anti-money laundering (AML) solution for DeFi, to the rapidly expanding smart contract and DeFi economy. Making Coinfirm’s AML data available on-chain will enable applications and/or users to add compliance as an optional plug and play feature when using smart contract applications, allowing DEXs, traditional finance, enterprise companies, and more to meet their compliance requirements when interacting on-chain.
As a provider of anti-money laundering and risk analytics data for blockchain to major companies in the industry, Coinfirm’s AML solution consists of a risk score for 270+ compliance indicator checks, blacklisted blockchain address checks, high-risk transaction pattern warnings, and more across the widest coverage on the market. Chainlink’s decentralized oracle architecture allows Coinfirm to make compliance data and services available to dApps in a highly available and tamperproof manner. Additionally, it’s blockchain agnostic framework provides a preferred method of sharing the data across any blockchain environment, giving rise to on-demand compliance across ecosystems.
The Need for AML Compliance in DeFi
As DeFi grows, so does the need to address compliance. Currently, there are limited options for meeting AML regulations on-chain, particularly because compliance isn’t built directly into most smart contract protocols. Instead of forcing developers to re-architect their existing smart contracts, it’s easier to leverage oracles as a sort of ‘plug and play’ option for compliance. For example, an existing DeFi dApp adding in a small feature where a user can pay a compliance oracle to relay its data on whether or not an address has been blacklisted prior to sending it funds.
With the high-quality AML data from Coinfirm and a secure oracle like Chainlink, users can get answers to these questions on demand with very little upfront integration work. It’s not hard to envision a scenario where a DEX or decentralized lending dApp uses a Chainlink oracle to bring an AML risk report on-chain to decide if an address is blacklisted before executing a transaction. Similarly, a bank could automatically trigger an off-chain payment for a smart contract once it has cross-referenced the address against OFAC lists and Coinfirm’s AMLT risk scores.
These are just some of the many exciting possibilities that bringing AML data on-chain opens up in terms of smart contract automation and execution. Other possibilities include:
- Limiting wallets that have received funds from identity-obscuring services
- Blocking wallets that have received funds from criminal websites
- Whitelisting addresses across multiple DeFi products or services
We look forward to continuing to grow our reservoir of compliance data and tools, and using Chainlink to connect these resources to popular on-chain applications – all without requiring major redesigns of existing blockchain infrastructure. By doing so, we can empower automated financial applications to meet all compliance regulations required by law.
“Coinfirm has been providing innovative solutions that enable more transparency and compliance for the unique needs of the crypto economy,” stated Jakub Fijolek, Co-Founder and CTO of Coinfirm. “The next stage involves using Chainlink’s secure and reliable oracle network to make our AML solution available throughout DeFi, enhancing the ability for traditional financial players to adopt DeFi technologies.”
“We look forward to helping Coinfirm make its AML data available across blockchain ecosystems via our decentralized network of secure and reliable Chainlink oracles,” said Daniel Kochis, Head of Chainlink Business Development. “Coinfirm’s AML data will help DeFi projects provide plug and play options for meeting local and national compliance regulations, opening up a clear path for enterprise as they look to use smart contracts to reduce business costs while maintaining compliance.”
Coinfirm is a global leader in AML & Risk Analytics for blockchains and cryptocurrencies. With the largest blockchain coverage of over 1400 cryptocurrencies supported including BTC, ETH, ERC20 tokens, Dash, NEO, Hyperledger, LTC and the first in the world integration of XRP. Coinfirm’s AML solutions are used by more than 140 global clients ranging from crypto exchanges and protocols to major financial institutions. Coinfirm has won 6 global blockchain technology awards.
If you’re a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Bancor; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.