Through this alliance, Reap will leverage Chainalysis risk solutions that provide transaction monitoring and illicit activity detection capabilities for the blockchain. This is projected to ensure protection for Reap's user funds in the ever-changing digital landscape.
Commenting on the announcement, Reap’s officials stated that digital assets often face negative connotations, but the company aims to dispel any doubts within the industry. In addition, by collaborating with Chainalysis and leveraging its technology, the company will strengthen its international connectivity.
Moreover, this collaboration underlines Reap's ability to achieve the required compliance standards in cryptocurrency transactions, demonstrating its commitment to ethical practices in the Web3 space. Reap also aims to strengthen its ability to detect and prevent illicit fund flows, safeguarding users and the broader Web3 community.
Chainalysis' Crypto Crime Report for 2024 estimates that in 2023, illicit activity associated with crypto transactions amounted to only 0.34% of the total volume. However, the value received by illegal cryptocurrency addresses was at least USD 24.2 billion, which is a significant amount that requires attention. To tackle this issue, Reap has adopted Chainalysis risk solutions that leverage their blockchain data platform to detect and trace on-chain illicit fund flows. By authorising Reap to trace the sender's journey, Chainalysis will improve visibility and the detection of abnormal flows at any stage of the transaction process, highlighting the transparency offered by blockchain technologies.
Moreover, as the official press release shows, in 2023 Reap also noticed a significant trend where around 20% of its clients who had not previously used digital currencies started using stablecoins for payments, reflecting the growing recognition of stablecoins. Furthermore, as digital currency adoption continues to rise globally, a comprehensive solution is necessary to ensure strict governance, transaction monitoring, and risk management to combat money laundering and other illicit activities.
To address this, Reap has amplified its transaction processing capabilities and client protection by resorting to Chainalysis risk solutions and tools that enable real-time transaction monitoring and risk identification, strengthening Reap's ability to mitigate potential risks. Furthermore, Chainalysis integrates with Fireblocks, which is Reap's custodian wallet. As a result, all transactions passing through Fireblocks are automatically screened by Chainalysis, promptly flagging any suspicious fund flows.
The official announcement further details that blockchain is powering a growing wave of upgraded tools, such as Reap's payment solutions and risk management. Therefore, the collaboration between Reap and Chainalysis will help their clients manage risks while protecting customers, increasing consumer trust and strengthening brand reputation.
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