It has been reported that the integrated partnership with Robinhood Crypto will help the trading app meet compliance requirements ahead of the launch of its crypto wallet, expected to roll out for all users in early 2022.
According to Robinhood, the platform will adopt Chainalysis’ Know Your Transaction, the firm’s monitoring compliance solution, in addition to Chainalysis Reactor, its investigations software. The trading app also said its teams would be using Chainalysis’ certification programs to achieve compliance.
Ben Einstein, the head of partnerships at Robinhood Crypto, said:
“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.”
Robinhood stated that more than 1.6 million people are on the waitlist for a wallet, which will support depositing and withdrawing Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and other tokens. The trading app has been testing its digital wallet feature since it was first announced in September.
However, many government agencies and companies in the private sector employ Chainalysis as a solution to track both legitimate and illicit crypto transactions. When the United States Department of the Treasury announced it would impose sanctions on the Czech and Russia-based business Suex OTC, it cited an investigation from the analytics firm.
Thus, after going public on the Nasdaq in July, the share price of Robinhood (HOOD) has steadily declined from an all-time high of $70.39 on August 4 to $21.83, as of December 13, a drop of around 70%.