New York-based blockchain analysis company Chainalysis has announced the launch of a new alert service that flags suspicious cryptocurrency transactions.

Chainalysis’ Know Your Transaction (KYT) tool is a real-time anti-money laundering compliant solution for monitoring transactions and is available for 15 top cryptocurrencies. These include Bitcoin (BTC), Litecoin (LTC), Ether (ETH, Bitcoin Cash (BCH), Maker (MKR), Tether (USDT), ERC-20 tokens, Dai and other stablecoins.

According to the firm:

“Chainalysis KYT alerts are designed to help cryptocurrency businesses and financial institutions mitigate exposure to regulatory and reputational risk by helping compliance teams focus on the most urgent activity and enforce compliance policies while better allocating resources.”

Commenting on the new development, John Dempsey, Vice president of product at Chainalysis, said:

“Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities, which is why Chainalysis is investing in fast, actionable alerts to help our customers mitigate risk across cryptocurrencies.”

Since the newly added alert feature is built directly into the user interface and API, it enables users to track, investigate and take necessary actions on questionable crypto transactions. The Know Your Transaction (KYT) software also allows cryptocurrency companies to customize risk parameters, which can be based on their own business policies.

The KYT tools send alerts to users every time the transferred amount is above a certain limit and whenever a crypto transaction involves a possibly risky counterparty. The alert levels include low, medium, high and severe.

The blockchain investigation company aims to address the current guidelines put out by FATF (Financial Action Task Force), an intergovernmental organization that sets standards for anti-money laundering and develops measures to mitigate terrorism financing. These new rules are aimed at cutting down the number of illegal activities involving cryptocurrencies.

In June 2019, Chainalysis entered into a partnership with Bitbox exchange, which is a subsidiary of LINE, the largest social networking company in Japan, with more than 700 million users. Thanks to this partnership agreement, Chainalysis now provides the cryptocurrency exchange with anti-money laundering and transaction monitoring services.