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Robinhood Turns to Chainalysis for Data, Compliance Tools

Robinhood will use Chainalysis software to monitor crypto trades and meet compliance requirements as it prepares to roll out a crypto wallet.

Updated May 11, 2023, 7:09 p.m. Published Dec 13, 2021, 12:59 p.m.

Robinhood Reportedly Testing Feature to Protect Crypto Investors From Volatility

Crypto tracing firm Chainalysis said it will provide data and compliance tools to Robinhood’s online crypto trading service, Robinhood Crypto.

Robinhood (Nasdaq: HOOD) will use the software to meet compliance requirements and help keep accounts safe, Chainalysis said in a blog post Monday.
Robinhood Crypto will use Chainalysis KYT to flag “risky and illicit transactions” in real time, and Chainalysis Reactor to help with due diligence into potential suspicious activity.
Robinhood has said it expects to make its long-awaited crypto wallet available to all customers by early 2022. The wallets have a waitlist of more than 1.6 million.
As consumer access to cryptocurrency grows there is increased attention toward regulatory compliance standards.
“Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner,” said Ben Einstein, head of partnerships at Robinhood Crypto.

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Robinhood Chainalysis Compliance Data

Tanzeel Akhtar

Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.