Dapper Labs, one of the most successful companies in the NFT space, has partnered with blockchain intelligence agency Chinalysis to expand its compliance profile in the NFT business. The company will use Chinaialis Insights to help users better understand each transaction and the purpose of each transaction with their product. This will help them identify money laundering cases and market manipulation efforts.
Dapper Labs will use ‘Chanellysis’ solution to increase surveillance
The creators of notable projects such as Deeper Labs, Cryptocurrencies and NBA Top Shot have partnered with Chinalysis, one of the top blockchain intelligence agencies, to oversee transactions involving its products. The company is trying to better understand what users are doing with his creations and if they are being used by bad actors for illegal purposes.
NFTs have received a bad rap, with some members of the cryptocurrency community complaining that some of these NFTs are being used for money laundering because of their irresistible value. Anyone wishing to enjoy the Dapper Labs NFT market recognizes the need for more awareness to make their products safer. Na eem m baola, Associate Director of Compliance at Dapper Labs, says:
NFTs are one of the most exciting places in cryptocurrency, but they will only be successful in the long run if we can ensure a safe environment for our customers.
NFT boom and channelization weapon
Although NFTs were largely ignored due to their low trading volume, everything has changed this year, with NFT projects reaching more than 1 1 billion in transactions. As a result, concerns have been raised about the legitimacy of funds going to such markets, and companies such as Dapper Labs are increasingly concerned about the effectiveness of compliance measures.
Dapper Labs will apply two different channelization tools. The first is called Chainalysis KYT (Know Your Transaction), which can identify company claims to be illegal and risky transactions in real-time, alerting Dapper Labs when something goes wrong. Another tool that the company will use is the Chinalysis Reactor, which will allow the company to investigate and further investigate any transaction. These tools form part of the Chainalysis arsenal for dealing with irregularities in these new uses that are NFT-based compliance.
What do you think about Dapper Labs ’partnership with ChanelLysis? Tell us in the comments section below.
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