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Blockchain

Blockchain Firm BUIDL Introduces a New AML Tool

BUIDL, the Japan-based blockchain firm, has introduced a new tool called SHIEDL for digital currency exchanges in the previous week. SHIEDL is an AML (anti-money laundering) as well as CFT (counter financing of terrorism) tool.

The address risk analysis tool SHIEDL helps calculate a particular blockchain address’s risk score. It renders the result through an API (application programming interface). The tool can analyze the addresses from ETH (Ethereum), BTC (Bitcoin), XRP (Ripple), ETC (Ethereum Classic), MONA (Monacoin), LTC (Litecoin), and BCHABC (Bitcoin Cash ABC).

SHIEDL examines the transaction flow from every address using the machine learning technique and relies on the anonymization techniques, such as coin mixing service, for calculating each address’s risk score. As per the company, this tool oversees transactions while depositing or withdrawing digital currencies. And not just that, it also keeps track of transactions obtained from addresses of crypto exchanges from where the digital currencies have been withdrawn or bought.

When the tool identifies a particular transaction to be of high-risk, it immediately informs the exchange. With the utilization of this tool, it becomes possible to put those addresses considered to be involved in criminal activities on the list tagged as high-risk addresses.

As per Masaharu Uno, the Vice President of BUIDL, one can’t wipe out a poor reputation in the digital currency area because of an attack. For instance, a hacking attack carried out by a harmful entity. But thanks to the address tracking tool, it is now possible to detect suspicious transactions.

It is worth noting that the FAT, short for Financial Action Task Force, had issued a recommendation on the latest technologies in the month of June 2019 about AML measures concerning cryptocurrencies. It has asked more than 190 nations and regions in the FATF member list to quickly develop the AML laws for digital currency.

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Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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