Long Beach (CoinChapter): Cryptocurrency intelligence company CipherTrace is using Chainlink to release CipherTrace DeFi Compli. This is a compliance solution enabling DEXs and other DeFi applications to abide by Office of Foreign Assets Control sanctions requirements.
As part of its DeFi solution, CipherTrace has launched a DeFi compliance oracle service on Chainlink. This will make relevant compliance data available directly on-chain for easy integration with existing DeFi frameworks.
Half of all crypto hacks in 2020 came from DeFi protocols and exchanges. Because of this, a target is growing on DeFi. Additionally, funds stolen from centralized exchanges are increasingly being laundered through DeFi. This was the case in the KuCoin hack with $281 million stolen.
CipherTrace CEO Dave Jevans spoke to this point. “The $40 billion locked in DeFi protocols puts an even bigger target on DeFi exchanges and protocols,” he said. “Ensuring that sanctioned addresses cannot use DeFi to fund weapons of mass destruction programs should be among DEXs’ chief concerns right now.”
“CipherTrace’s DeFi Compli regulatory compliance oracle on Chainlink can support DeFi protocols in achieving the compliance needed to ensure crypto’s long-term viability.”
CipherTrace Chainlink Node
Additionally, the CipherTrace Chainlink node will be able to both broadcast CipherTrace’s API data onto any blockchain network. Likewise, it will digitally sign data on-chain to generate strong cryptographic assurances that it came from CipherTrace and has not been tampered.
Head of Partnerships at Chainlink Labs Daniel Kochis believes this is big news for the growth of DeFi. “Despite the significant growth DeFi has witnessed in the past year, many DeFi protocols are currently limited in their ability to leverage compliance tools”. Kochis added that CipherTrace is bringing a compliance oracle solution to DeFi. By doing so it will make “integrating compliance data as simple as possible for DEX and other protocols.”
CipherTrace’s highly-refined AML data will be ported directly to smart contracts. With this data on-chain through Chainlink, smart contract developers everywhere can build more advanced and data-driven products. These will be suitable for users, institutions, and governments alike. This is a major step towards bringing DeFi applications to the mainstream.
Corey has been involved in media and writing since graduating from the illustrious Howard University with a degree in Broadcast Journalism. While relatively new to the cryptocurrency world, he has been writing since 2012 with most contributions coming in the sports world on websites such as LakersNation.com and DodgerBlue.com. Corey is also an avid sports fan who closely follows the Lakers, Cowboys, Dodgers, WWE, and UFC.
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