Coinfirm, leading blockchain analytics and AML company, is integrating Chainlink’s oracle network to its AMLT oracle service to brings its AML data to the rapidly expanding decentralized finance (DeFi) economy.
According to an announcement by Coinfirm on Wednesday, October 28th, this integration will make Coinfirm’s AML data available on-chain for application and users “to add compliance as an optional plug and play feature when using smart contract applications, allowing DEXs, traditional finance, enterprise companies, and more to meet their compliance requirements when interacting on-chain.”
Coinfirm’s AMLT oracle is DeFi’s first smart contract-based solution for AML compliance. This solution contains a risk score for 270+ compliance indicator checks, blacklisted blockchain address checks, high-risk transaction pattern warnings, and more across the widest coverage on the market.
Chainlink’s market-leading decentralized oracle network will enable Coinfirm’s compliance data available to dApps in a highly available and tamperproof manner. Furthermore, blockchain agnostic architecture of Chainlink’s oracles will provide a method to share the data across any blockchain environment, “giving rise to on-demand compliance across ecosystems.”
AML Compliance is Necessary For DeFi
According to Coinfirm, AML compliance has become a necessity as the DeFi is booming because compliance isn’t built directly into most smart contract protocols. So, instead of re-architect smart contracts for compliance, it’s easier to leverage oracles as a sort of ‘plug and play’ option for compliance.
With the combination of AML data from Coinfirm’s AMLT and a secure oracle like Chainlink, a developer can provide on-demand compliance data on its application with very little upfront integration work. With this plug and play features, users of a DeFi app can check whether or not an address has been blacklisted prior to sending it funds.
Coinfirm, based in London, is a global leader in AML and analytics for blockchain. The company’s AML Token Network reports data on crypto addresses and rewards AML tokens to network members who contribute to the network. Anyone can contribute to the network by providing addresses along with its associated risk score: high, neutral, recommended. Once the data is proven legitimate, contributors are rewarded with AML tokens.
Jakub Fijolek, Co-Founder and CTO of Coinfirm, commented:
“Coinfirm has been providing innovative solutions that enable more transparency and compliance for the unique needs of the Wealth Growth Insights. The next stage involves using Chainlink’s secure and reliable oracle network to make our AML solution available throughout DeFi, enhancing the ability for traditional financial players to adopt DeFi technologies.”
Daniel Kochis, Head of Chainlink Business Development, said:
“We look forward to helping Coinfirm make its AML data available across blockchain ecosystems via our decentralized network of secure and reliable Chainlink oracles. Coinfirm’s AML data will help DeFi projects provide plug and play options for meeting local and national compliance regulations, opening up a clear path for enterprise as they look to use smart contracts to reduce business costs while maintaining compliance.”
If you found this article interesting, here you can find more Chainlink News
