Technology

Brazilian Banco Topázio partners with Chainalysis in cryptocurrency business

Banco Topázio is investing in compliance technology and establishing best practices ahead of enforcement of new guidelines

Photo: Banco Topázio
  • Banco Topázio will use Chainalysis Reactor, the company’s investigations solution, to conduct due diligence on cryptocurrency businesses;
  • Through it, financial institutions like Banco Topázio, law enforcement, and cryptocurrency businesses can identify suspicious transactions and connect them to real-world entities.

Chainalysis, a blockchain analysis company, announced a partnership with Banco Topázio, a Brazilian bank that services traditional and fintech clients. Under the terms of the agreement, Banco Topázio will use Chainalysis Reactor, the company’s investigations solution, to conduct due diligence on the cryptocurrency businesses it provides with banking services, including foreign exchange, Bank as a Service API solutions, and deposits and withdrawals. 

Although cryptocurrency regulation has not yet been finalized in Brazil, Banco Topázio is investing in compliance technology and establishing best practices ahead of enforcement of Financial Action Task Force guidelines.

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Blockchains are public registers, offering a permanent, digital record of transactions. But the data is only available as alphanumeric strings. According to Chainalysis, this provides some information, but with limitations. You can see multiple cryptocurrency addresses, but the blockchains don’t provide information about who those addresses belong to. 

Chainalysis Reactor is the investigation software that connects cryptocurrency transactions to real-world entities, enabling cryptocurrency businesses and law enforcement to combat criminal activity such as fraud, extortion, and money laundering on the blockchain. It is used by 120 Chainalysis customers. 

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The firm serves as a partner to financial institutions, governments, and cryptocurrency businesses around the world, providing expertise on cryptocurrency crime and money laundering tactics, techniques, and procedures.

Through Chainalysis Reactor, financial institutions like Banco Topázio, law enforcement, and cryptocurrency businesses can identify suspicious transactions and connect them to real-world entities.

“Chainalysis applies advanced heuristics to the extensive data we’ve collected over years in order to make the blockchain information usable. We have mapped cryptocurrency addresses to services, so that using Reactor, our investigations tool, customers can literally follow money trails across the blockchain and combat criminal activity”, explains Madeleine Kennedy, director of communications at Chainalysis, to LABS.

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“As one of the first financial institutions openly banking cryptocurrency businesses in Brazil, Banco Topázio is helping to lead the responsible growth of the cryptocurrency industry in Brazil,” said Jason Bonds, Chief Revenue Officer at Chainalysis

The firm serves as a partner to financial institutions, governments, and cryptocurrency businesses, providing expertise on sophisticated cryptocurrency crime and money laundering tactics, techniques, and procedures. Through Chainalysis Reactor, financial institutions like Banco Topázio, law enforcement, and cryptocurrency businesses can identify suspicious transactions and connect them to real-world entities.

“We are constantly evolving our exchange processes, seeking technological excellence, a qualified team, and application of the best market practices,” said Lia Thomazzi Susin, Topázio Exchange Manager.

“Chainalysis Reactor helps us validate our customers’ activity through the monitoring and analysis of their transactions, all publicly registered on the blockchain,” said Raíssa Sanguinetti, exchange analyst at Banco Topázio.