Key facts:
The executive sees a growth of bitcoin, but with the accompanying inspector.Revealed that governments and law enforcement authorities have increased their research applications.Chainalysis is a name recognized in the ecosystem of the cryptocurrencies and blockchain. From the 2014 the business of intelligence and security on records distributed offers its services to government agencies, police bodies, financial institutions and startups related bitcoin.Su main work consists in conducting research to determine if the cryptocurrencies as bitcoin is used in illicit activities, which has been challenged by the management of the information it processes. That is to say, Chainalysis navigates between two waters: the cryptocurrencies and those of the state entities who need to know how to use criptoactivos, for example.The intention is to generate greater transparency, even if the transaction is unlawful with cryptocurrencies only represent about 1% of the total number of operations.To learn more about the work that develops Chainalysis, Breaking News spoke with Daniel Cartolin, representative of business for Latin america, who explained that the cryptocurrencies are safe ways to store and transfer value, but that these must have an accompanying regulatory if the goal is to exploit all their potential.Analyze a chain of blocks is a complex process, how do you classify Chainalysis your research? What is focus and what is for later?We prioritize services that are most popular all over the world, the entities that are unlawful, as the markets darknet, and the priorities for government agencies, such as the entities associated with the financing of terrorism. Beyond bitcoin, we focus on the cryptocurrencies that represent the activity more affordable.Generate confidence in the blockchains can be a daunting task between companies, governments or banks how they try to promote it?We want the world to know that criptomoneda is a safe way to store and transfer value, only then the technology can continue to grow and cause the global economy to be bigger and more fair.It may seem contradictory to publish as much research on the criminal use of the cryptocurrencies why not focus on 98.9% of the transactions that are legitimate?On the one hand, problems cannot be resolved if you ignore them. The forces of law and order, the regulators and traditional financial institutions should be on board for the cryptocurrencies continue to grow. The only way this can happen is if you have the tools and information they need to combat financial crimes effectively, or more effectively, as they do in the trust world.In the second place, the very fact that we can quantify and investigate the crime with cryptocurrencies demonstrates effectively the transparency inherent in the cryptocurrencies.This type of analysis would never be possible in fiat currency, but it is done in cryptocurrencies as each transaction goes in a public workbook. We hope that our research will help to create awareness about the transparency of the cryptocurrencies, generating gains in reputation for the industry and, ultimately, the adoption of more widespread. However, we are not only focused on the crime. Increasingly we seek to publish research and ideas on the activity of the market.For Daniel Cartolin, representative of business Chainalysis for Latin america, the fact of quantify and investigate the crime with cryptocurrencies demonstrate its transparency inherent.The cryptocurrencies are a world in expansion, how much have increased the requests for research from governments or banks?About 50% of our business is on the side of the government and the other 50% is on the side of the private sector. While the majority of our private sector clients are businesses of cryptocurrencies, the financial institutions are a vertical growth.Could it be said that there is a greater concern / interest on the part of the authorities?Our business of government continues to grow as the police and regulators see more and more cases related to the cryptocurrencies and realize tools that allow them to follow the money in the chain of blocks.How to achieve higher levels of security / transparency if the theft of coins, scammers, and the emergence of shell companies do not stop?We hope that the transparency in the blockchains to impede increasingly the success of the bad actors.How do you handle the privacy of its customers?Any link from one transaction to the person or persons involved in that transaction must be done outside of Chainalysis because we do not collect any personally identifiable information from the exchanges. Chainalysis only knows that a particular address belongs to a client in this exchange, not who is the client.What companies have partnerships in Latin america?We have relationships with companies around Latin america, but for now we are working with Brazil, Mexico and Panama more often. We are now starting to grow, with a presence in Argentina, Colombia, Chile, Peru and Paraguay. In these moments we can not give information on who are our customers.What Latin American countries receive more requests and of what type?We received a variety of requests in all of Latin America with respect to our solutions that help companies of cryptocurrencies (such as exchanges) to comply with the regulatory requirements and partners anti-money laundering.We also see requests from the police to help with cases of financial crimes such as scams, extortion, fraud, stolen funds and drug trafficking.Increasingly, we see a greater interest on the part of traditional financial institutions, as they seek to better understand the risk profiles for a growing number of companies cryptocurrencies looking for bank accounts.We’re also seeing more requests for payment processors and fintechs that seek to open the payment functionality to include payment types with cryptocurrencies safely, especially in areas with inflation or remittance markets. The majority of these requests come from Brazil, Mexico, Argentina and Colombia.There is a process of expansion of Chainalysis to the region in what countries will open operations? does it include new offices?That is something that we are still thinking, but the situation with COVID-19 has made these conversations are delayed. In these moments we have a few employees in Brazil.Pandemic coronavirus is transforming the entire ecosystem, how has this affected the operations in Chainalysis?Chainalysis is a global company software that is already used to communicate at a distance. We have not been working from our offices several weeks ago and all of them are working from their homes. Instead of meetings and conferences in person, we are organizing more webinars, virtual events and meetings.In November, it was reported that there was a cut of 20% of its staff to prioritise profit, and to bring services to the market have achieved these results? is there another restructuring in the door?I can confirm that the round of layoffs in November 2019 affected the 20% of our employees and we were in 155 workers. At the end of the first quarter of this year, we had 160 people (since November, we’ve hired five new employees for critical functions), and we plan to maintain approximately the same number of staff in the foreseeable future. There is more restructuring in our vision.Andreas Antonopoulos pointed out that the company is helping the “worst dictators and regimes of the world” and that Chainalysis is violating the civil rights of millions of people what is the position of the company?For bitcoin to reach its potential and gain widespread adoption, companies must comply with the regulatory expectations. We work with companies of cryptocurrencies to help them implement compliance processes that they can improve with their obligations to AML (anti-money laundering program).We also work with government agencies in the united States and around the world, providing them with tools to investigate illegal activities such as scams and people who take advantage of many of the most vulnerable people of the society. We do this to build trust in the blockchains.We have policies and procedures that help us to determine how governments work and, as a general rule, Chainalysis does not work with dictatorial governments.Have you not received a request from Venezuela or study transactions of cryptocurrencies made by venezuelans?We identify the services venezuelans in our products, but we have not published a study or report on the use of the criptomoneda venezuelan. Also, as we are an american company can not conduct business with Venezuela because of the sanctions.