Despite the stable rise in popularity of bitcoin over the past years, there are still security and fraud risk issues that remain to be solved.
According to media reports, blockchain analysis software company Chainalysis and Danish electronic payments provider Nets are joining forces to supply Nordic banks with a system that will validate bitcoin transactions and thus meet the security requirements that financial institutions need to comply with.
Chainalysis specializes in risk assessment and analysis of blockchain activities. To this end, it supports anti-money laundering initiatives by cooperating with Europol and helping banks identify suspicious customers through an online tool that tracks the source of the risky transaction.
Nets works with multiple financial institutions on the Nordic market, including Danske Bank, DNB and Nordea.
By default, bitcoin transactions are public and openly traceable, and do not contain any personal information. Those attributes have made cryptocurrency appealing to crime syndicates and hackers. Hence, if digital currency transactions could be securely connected to particular individuals, this would be a major breakthrough for law enforcement.