ConsenSys Launches Codefi Compliance

ConsenSys announces the launch of Codefi Compliance, an automated and agile regulatory and compliance platform for digital assets.
by ConsenSysJune 8, 2020

New York City— ConsenSys announced today the launch of Codefi Compliance, an automated and agile regulatory and compliance platform for digital assets. Codefi Compliance is a new offering in the Codefi product suite, which collectively powers commerce and finance by optimizing business processes and digitizing financial instruments. As a next-generation solution for anti-money laundering (AML) and countering the financing of terrorism (CFT), Codefi Compliance ensures digital assets meet regulatory expectations without compromising market and business requirements, regardless of jurisdiction and design. It is the only compliance solution designed exclusively for Ethereum-based assets and built by ConsenSys, the leader in Ethereum development. 

Historically, AML/CFT compliance has leveraged know-your-customer (KYC) guidelines, which require financial services institutions to make an effort to verify the identity, suitability, and risks associated with engaging with its customers. Codefi Compliance delivers know-your-transaction (KYT), which is critical for decentralized infrastructure and provides the next level in compliance analysis. KYT is privacy-preserving by evaluating behaviors of participating addresses rather than the identity of the participants. By providing KYT monitoring designed for blockchain-based assets with the highest quality on-chain data, Codefi Compliance provides AML checks to ensure transactions can remain anonymous while complying with regulations. 

Codefi Compliance empowers clients with tools for risk assessment, risk management, and risk investigation. Users can manage global operations from one account by adjusting compliance settings according to jurisdiction, seamlessly managing multiple settings across international divisions. Codefi Compliance provides real-time compliance oversight and risk status for all digital assets with filters for labels, identified attributes, transaction compliance, and risk level. Clients can track asset activities, user behavior, transactions, fund flow and view data analysis for spot trends. Insights derived from Codefi Compliance can help businesses facing dynamic regulations to ensure all requirements are met without interrupting process flows. 

Ethereum continues to gain momentum as the programmable blockchain of choice for enterprises, as the majority of the world’s largest companies using blockchain are building on Ethereum. Prior to Codefi Compliance, businesses dealing with digital assets on Ethereum faced the challenge of addressing various standards and implementations for each asset and managing the network’s complex database. Codefi Compliance uses a custom framework to provide an AML/CFT solution compatible with Ether and the most widely used token standards such as ERC20, ERC721, ERC179, ERC777, along with notable stablecoins like DAI, USDC and Tether, covering over 280,000 types of digital assets built on Ethereum. It is the first solution built for digital assets that will run on ETH 2.0, the much-anticipated network upgrade that will exponentially increase transactions per second and enable Ethereum scale. 

“Providing robust AML/CFT compliance for Ethereum-based digital assets is a keystone step in bringing the institutional financial industry to decentralized finance. Codefi Compliance is the next module in our product suite to eliminate complexity and risk in using DeFi, and help any business benefit from using digital assets” said Lex Sokolin, Global Co-Head of ConsenSys Codefi. 

Codefi Compliance is built for any business interacting with digital assets on Ethereum. Prediction market platform Sight is leveraging Codefi Compliance to ensure transactions using tokens comply with local regulations. “As a non-custodial prediction market platform, Sight was looking for a crypto AML solution that would be easy to integrate, user-friendly, and cover all Ethereum tokens. Codefi checked all the boxes, giving regulators the peace of mind that Sight is meeting the highest of AML standards,” said Graeme Barnes, Product Manager, Sight.

Codefi Compliance is available today at codefi.consensys.net/compliance.  

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