In an exciting turn of events, KPMG Canada joined the race to combat crypto crimes by partnering with the prominent blockchain analytic firm Chainalysis. The partnership with Chainalysis demonstrated KPMG’s commitment to safeguarding the consumer by supporting companies to levy measures that support fair business practices.
In light of a recent study that demonstrated that customers have lost billions in crypto-related crimes, the KPMG and Chainalysis agreed to join forces to bring down criminals targeting to exploit the public to acquire quick riches.
The attempt to address crypto crime compelled the two companies to develop practical strategies to ensure the digital industry remains safe and secure.
KPMG Canada Partners With Chainalysis
The KPMG team agreed to offer Chainalysis advanced blockchain monitoring to support the responsible use of crypto technologies. The giant consulting company also decided to leverage its governance models and risk management skills to help Chainalysis meet global regulatory standards.
The dynamism of the crypto industry and its exciting popularity have obliged lawmakers to amend the regulations to safeguard consumers. Lately, crypto has become an effective tool for orchestrating criminal activities.
A recent study titled Chainalysis 2023 Crypto Crime Report indicated that transactions involving unlawful use of crypto reached $20.6 billion in 2022. The Chainalysis findings demonstrated that lately, criminals have been scoring exchanges by launching malicious attacks, SIM swaps, and pig butchering, among others.
The rise of crypto crime has posed a threat to the development of the crypto industry. Despite global policymakers’ pivotal role in shielding customers from exploitative activities, crypto criminals have devised clever strategies to steal from the public.
This development has forced organizations to explore innovative solutions to assist in conducting extensive criminal investigations and recovering stolen assets. With the changes in crypto regulation, KPMG plans to support Chainalysis’ anti-money laundering practices to meet international standards.
Factors Contributing to the Rise of Crypto Crimes
This will be attained by upskilling and equipping the KPMG staff with basic fundamental principles in forensics. The training and seminars will nurture the KPMG employee’s professionalism and skillset to that of the Chainalysis Certified Investigators.
The proposed training will play a pivotal role in assisting businesses in the private and public sectors to track suspicious crypto activities. Speaking exclusively, the KPMG Crypto and Blockchain team lead, Kunal Bhasin, admitted that most customers have been approaching the firm for crypto advice.
Having developed deep expertise in crypto matters, the executive believes that the partnership with Chainalysis will support the KPMG team to offer ever-powerful solutions to the customers.
Bhasin anticipates that the collaboration with Chainanalysis will support the KPMG staff to expand their knowledge in forensic investigations. He believes the partnership will help the two companies to support the growth of blockchain and crypto technologies.
Benefits of Chainalysis and KPMG Partnership
In support of this, the head of national forensics at KPMG Canada, Enzo Carlucci, affirmed that with the ever-evolving nature of the crypto industry, the government has teamed up with key players in the financial sector to explore innovative solutions to address criminal activities.
The official admitted that the partnership allows the KPMG team to access the Chainalysis proprietary tools, such as blockchain-powered data monitoring tools. Carlucci believes the partnership will enable KPMG to quickly identify and report susceptible activities to the relevant authorities.
For years, the consulting firm has faced challenges in addressing criminal activities due to the severity of the crime. The executive anticipates that through the partnership, KPMG will educate the customers on risks associated with financial fraud and strategies to avoid falling into the criminal’s trap.
In a subsequent report, the chief strategy officer at Chainalysis, Jonathan Levin, believes that the partnership with the industry-leading professional service provider in Canada allows the blockchain analytical firm to develop solid know-your-transaction (KYT) and anti-money laundering (AML) rules.
The executive anticipates that collaborating with KPMG will allow Chainalysis to develop unique investigation approaches.