Nami Foundation, a pioneering organisation in the field of digital assets and technology financial economics in Vietnam, is reinforcing its compliance to regulations through the use of Chainalysis’ blockchain data platform.
As a result, Nami Foundation now has stronger transaction monitoring and investigation capabilities to detect money laundering and terrorist financing while protecting users from illicit activity on its blockchain services — Nami Exchange and Nami Insurance.
In the Chainalysis Global Cryptocurrency Index 2022, Vietnam topped the charts for the second year in a row, as a result of the nation’s extremely high purchasing power and population-adjusted adoption across centralized, DeFi, and P2P cryptocurrency tools.
The Chainalysis Cryptocurrency Crime Report 2023 found that illicit transaction volume rose for the second consecutive year in 2022, hitting an all-time high of $20.1 billion.
To minimise potential risks, many blockchain organisations have conducted audits and invested in machine learning-driven blockchain analysis tools. They have also collaborated closely with security units to monitor abnormal transaction activities and prevent abuse while alerting users when necessary.
By taking these measures, blockchain organisations are proactively enhancing security and ensuring the safety of financial transactions, while ensuring compliance to the latest regulations.
“Security and compliance are the top priority for blockchain organisations when developing financial products,” said Nguyen Tuan Nam, COO of Nami Foundation.
Nguyen added that working with Chainalysis will strengthen their compliance and hone their capabilities in monitoring and investigating transactions, while protecting users from illicit activity.
Through the use of Chainalysis’ data platform with Nami Foundation’s services in late 2022, Nami’s development team can monitor transaction data on its systems, receive risk alerts from Chainalysis and then deploy asset protection solutions where required.
When there are high-risk transactions occurring on Nami Foundation’s services, the product development team will be enabled with Chainalysis’ blockchain analysis tools to suspend the transaction, investigate and verify before the assets are transferred to the receiving wallet.
This helps to limit fraud cases where hackers take advantage of investors’ trust. Nami Foundation’s relationship with Chainalysis highlights the importance of collaboration among industry players in maintaining the integrity and trustworthiness of the blockchain ecosystem.
Joshua Foo, regional director in ASEAN and Central Asia at Chainalysis, said blockchain analysis backed by quality data is key to ensuring a safe, secure and compliant user experience for organisations in the industry.