Technology | August 3, 2021

Blockchain Monitoring with Crystal: Crypto Compliance and AML/CFT/KYT

by the Crystal compliance team

Regulators across the world are continuously working to maintain a safe blockchain ecosystem and ensure crypto services operate at high AML/CFT standards. To achieve this, financial institutions, crypto exchanges, businesses, government agencies, and the larger crypto community need to get a clear picture of all historical and real-time on-chain activities. 

Crystal monitoring is a solution that full-stack visibility and insights into blockchain networks. Through automated monitoring for multiple digital assets, we make it easy for you to manage crypto transactions, identify risks, and maintain the health of your ecosystem.

Our best-in-class monitoring solution delivers AML compliance and streamlines risk monitoring procedures through its proprietary analytics technology as well as broad coverage of crypto assets and entities.

Why use Crystal’s blockchain monitoring tool?

Crystal’s advanced monitoring tool helps modern financial institutions and crypto services meet their operational and business compliance needs by: 

  • Streamline your crypto regulatory and compliance management

Our monitoring solution empowers banks, crypto exchanges, businesses, and other financial institutions to meet their regulatory and compliance obligations. By monitoring data on public blockchains, Crystal brings transparency within the cryptocurrency ecosystem. This makes it easier for industry players to mitigate crypto risks and satisfy their AML/KYC/CFT requirements. 

  • Detect fraudulent activities

Crystal’s monitoring solution allows you to drill into crypto transactions and understand the flow of funds. It provides a clear picture of all on-chain activities, thus making it easier to analyze customer profiles and detect suspicious transaction patterns. 

  • Monitor risk of crypto entities and portfolios 

Our automated monitoring solution leverages proprietary algorithms powered by machine learning to process huge data sets and determine the risk profiles for wallets, addresses, and other blockchain entities based on previous transactions and known associations. 

  • Automate your due diligence procedures

Whether you’re using Crystal as a web service or on-premises, our monitoring solution helps you screen VASPs and assess the credibility of entities. We provide detailed, accurate forensic data as well as customizable processes for pinpoint investigations and crypto due diligence. 

How do I use Crystal’s blockchain monitoring solution?

Crystal’s monitoring tool allows you to check customer risk profiles, identify risky amounts received and set up custom alerts as well as flagging options. You can also check withdrawal addresses specified by a customer before making a transaction. This is possible for all digital assets supported by Crystal, including ERC-20 tokens.

A high-level view of your monitoring tool usage statistics is available in the monitor overview tab.

The real-time overview tab shows all transfers, customers, and assets added to the monitoring tool.

Below the real-time overview section, we have the total connections for all transfers, transfers by volume, and transfers by currency. These sections provide a general view of customer connections, transactions, and assets monitored, respectively. 

For more precise and detailed monitoring data, Crystal allows you to narrow down your monitoring scope in three ways: transfers, currencies, and customers. Let’s take a quick look at these three monitor options as supported by the tool. 

1. Monitoring transfers

You can use this option to monitor a batch of transfers, dig into their transaction details, associated entities, and customer risk scores. From the transfers tab, you can see a list of all transfers you are monitoring. If you’d like to, you can add the transfers to a case or export the data to PDF/CSV, depending on your needs. 

Clicking on a single transfer in the list yields a pop-up window with details such as transaction hash, address, counterparty, transaction date, state of transfer, cases linked to the transfer, and alerts generated by the transfer. This section also shows the sources or destination of funds, depending on the type of transfer. 

2. Monitoring customers

If you’d like to monitor individual customers, their transactions, and other activities on the blockchain, this is the best option. It is especially useful when creating and managing cases associated with a specific user. To add a new customer to the monitoring tool, go to the customers tab and click the “create customer” button. 

Crystal will prompt you to add a few more details such as customer name, type of asset, and destination address. After hitting the create button, the new customer will appear on the existing customer list, as shown below. 

The customer list contains all customers, their total transfers, deposit amounts, withdrawal amounts, and risky amounts. You can have a look at individual customer data by clicking on their name, which opens the customer details window. As illustrated below, the customer details window provides more information on the transaction activity of the customer, including deposits and withdrawals. 

For every customer, Crystal will also show their connections, total transfers, associated addresses, and linked cases, if any. 

3. Monitoring addresses

Crystal allows you to monitor deposit addresses automatically by adding them to the monitor. When you add multiple address hashes, the monitoring tool will create a list of addresses that includes details such as currency, customer linked to the address, and the number of transfers. The tool monitored addresses table also has a toggle switch that you can use to enable or disable auto-parsing of new transfers in the tracked address. 

Crystal monitoring – The perfect solution for your crypto compliance and risk intelligence needs

Through this advanced monitoring solution, Crystal empowers crypto services and financial institutions to confidently manage risks and uncover suspicious activities on blockchain networks. We provide everything you need for transaction monitoring, dynamic risk scoring, and visualization of on-chain activity across multiple digital assets.

Are you looking to automate your blockchain risk monitoring and regulatory compliance processes? Get in touch with us via [email protected] to understand how our best-in-class monitoring solution can help. We will be happy to schedule a demo, show you how Crystal works and get you set up.

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