On September 11, 2023, blockchain technology company OKLink Holdings (01499.HK), also known as "OKLink," officially launched its multi-functional on-chain anti-money laundering service: OKLink Onchain AML. As an Asian blockchain technology company providing regulatory technology (RegTech) platforms, OKLink's AML service combines address transaction analysis with blockchain standards and security audit technology to help digital asset companies, DeFi projects, and financial institutions achieve compliance and risk detection.
OKLink Onchain AML service attaches identifiers to blockchain addresses in the form of "tags" to effectively detect and identify risks associated with smart contracts, addresses, tokens, and illegal activities. By closely integrating tag data with on-chain data analysis, OKLink Onchain AML enhances its ability to provide automated and continuous transaction screening and tracking. Meanwhile, users can customize the AML platform according to specific compliance procedures, risk policies, or other requirements.
As the two core products in OKLink Onchain AML, KYT (Know Your Transaction) and KYA (Know Your Address) bring innovation to traditional KYC services. KYT establishes a connection between addresses and the real world, monitors risks in deposit and withdrawal transactions, identifies malicious addresses, and generates alerts to meet the compliance and risk control needs of Virtual Asset Service Providers (VASPs). KYA identifies, analyzes, estimates, and categorizes risk types associated with on-chain addresses, assisting in digital asset investigations and preliminary screening of on-chain transaction risks, thereby enhancing transparency in digital assets. It is worth mentioning that KYT currently supports detection of popular chains such as Base and Starknet.
Regarding the official launch of Onchain AML service, Zhang Chao, Vice President of OKLink Group and Executive Director of OKLink Holdings, stated, "OKLink's launch of OKLink Onchain AML leads the trend of transparency and security in the digital asset industry. It demonstrates OKLink's continuous commitment to developing and providing intuitive, blockchain-based tools to help clients monitor risks and ensure compliance with the ever-changing regulatory environment. We look forward to providing comprehensive and tailored services to virtual asset service providers, financial institutions, project teams, and government enforcement agencies."
In terms of product functionalities, Zhang Chao revealed, "OKLink now has comprehensive parsing capabilities for mainstream blockchain networks worldwide, covering more than 170 blockchain networks, and has extensive experience in the field of digital asset compliance and risk prevention."
OKLink Onchain AML, based on OKLink's blockchain browser, provides traceability for all transaction histories recorded on these blockchains,^ including Bitcoin, Ethereum, and other blockchains, with a total address count of 3.4 billion. Virtual Asset Service Providers (VASPs) can configure this service to meet regulatory requirements in different jurisdictions. Financial institutions can use OKLink Onchain AML's compliance solution to detect illegal activities such as money laundering, terrorist financing, fraud, and theft.^ DeFi and on-chain protocol projects can customize alerts to detect and mitigate fund risks, such as contract code and funds related to financial misconduct, sanctions, money laundering, terrorist financing, and other illegal activities. Government and law enforcement agencies can identify, monitor, and investigate virtual asset transaction risks and financial crimes more efficiently. OKLink Onchain AML actively responds to the new VASP licensing regime to be implemented in Hong Kong on June 1, 2023. The new VASP guidelines aim to protect investors by implementing strict requirements and protective measures related to asset custody, client asset segregation, and network security standards. Due to the operation of VASPs under Hong Kong's regulatory framework, the region will pay more attention to meeting regulatory compliance requirements, including AML and on-chain transaction monitoring. "All of these align with the philosophy and mission of OKLink Onchain AML," further explained Zhang Chao. According to official information, OKLink Onchain AML also provides a Web3 data analysis platform, blockchain explorer, and Chaintelligence data tool focused on on-chain investigations to help build compliance and security in the virtual asset field.
