Regulatory Framework

BlockchainAnalysis.io is built to help Virtual Asset Service Providers (VASPs), exchanges, custodians, OTC desks, and financial institutions comply with the evolving landscape of crypto-asset regulations. This page provides an overview of the key regulatory frameworks the platform supports.

Anti-Money Laundering (AML) and Know Your Customer (KYC)

AML/KYC regulations form the foundation of crypto compliance. They require regulated entities to verify the identity of their customers, monitor transactions for suspicious activity, and report findings to relevant authorities.

How BlockchainAnalysis.io Supports AML/KYC

  • Wallet screening — Risk-score any blockchain address across 52 chains before processing a transaction or onboarding a customer.
  • Entity identification — Match addresses against a database of 49M+ labeled addresses to identify counterparties (exchanges, mixers, sanctioned entities, darknet markets, etc.).
  • Transaction monitoring — Continuously monitor addresses on your watchlist and receive alerts when risk profiles change.
  • Enhanced due diligence (EDD) reports — Generate comprehensive reports for high-risk customers, including source-of-funds analysis, counterparty breakdown, and sanctions checks.
  • SAR/STR preparation — Export screening results in formats compatible with Suspicious Activity Reports (US) and Suspicious Transaction Reports (EU/UK).

BlockchainAnalysis.io does not perform KYC identity verification (ID document checks, liveness detection, etc.). It provides the blockchain analytics layer that complements your existing KYC provider by answering the question: "What is the risk profile of this customer's wallet address?"

FATF Travel Rule

The Financial Action Task Force (FATF) Travel Rule (Recommendation 16) requires VASPs to collect, verify, and transmit originator and beneficiary information for virtual asset transfers above a specified threshold.

Thresholds by Jurisdiction

| Jurisdiction | Threshold | Implementation Status | |---|---|---| | EU | EUR 1,000 | Implemented via Transfer of Funds Regulation (TFR) | | United States | $3,000 | Implemented via FinCEN regulations | | United Kingdom | GBP 1,000 | Implemented via FCA guidance | | Singapore | SGD 1,500 | Implemented via MAS Notice PSN02 | | Switzerland | CHF 1,000 | Implemented via FINMA AML Ordinance |

How BlockchainAnalysis.io Supports Travel Rule Compliance

  • Counterparty VASP identification — When a transaction is sent to or received from a known VASP, the platform identifies the counterparty institution, enabling you to initiate the Travel Rule data exchange.
  • Address attribution — Determine whether a destination address belongs to a hosted wallet (VASP-controlled) or an unhosted/self-custodied wallet, which affects Travel Rule applicability in some jurisdictions.
  • Pre-transaction screening — Screen destination addresses before sending funds to identify compliance risks proactively.

EU Markets in Crypto-Assets (MiCA)

MiCA (Regulation 2023/1114) is the EU's comprehensive regulatory framework for crypto-assets. It establishes licensing requirements for Crypto-Asset Service Providers (CASPs), stablecoin issuers, and token issuers.

Key MiCA Requirements Supported

  • Transaction monitoring — Ongoing monitoring obligations for CASPs, supported by BlockchainAnalysis.io's continuous monitoring and alerting features.
  • Record-keeping — 5-year data retention for compliance records, aligned with BlockchainAnalysis.io's retention policy.
  • Audit reporting — IFRS-compliant reports for crypto-asset holdings, fair value measurement, and impairment testing. See IFRS Reports for details.
  • Reserve reporting — Tools applicable to stablecoin issuers for demonstrating reserve backing through on-chain verification.

MiCA implementation is ongoing, with different provisions taking effect on different dates. BlockchainAnalysis.io continuously updates its reporting capabilities to align with finalized technical standards. Check the Changelog for the latest updates.

Sanctions Screening

Sanctions compliance is a strict liability obligation — there is no materiality threshold. Transacting with a sanctioned entity or address, even unknowingly, can result in severe penalties.

Sanctions Lists Covered

BlockchainAnalysis.io screens against 32+ sanctions lists, including:

  • OFAC SDN List (US Treasury) — Includes designated crypto addresses (e.g., Tornado Cash, Lazarus Group wallets)
  • EU Consolidated Sanctions List
  • UN Security Council Consolidated List
  • OFSI Consolidated List (UK HM Treasury)
  • SECO Sanctions (Switzerland)
  • DFAT Consolidated List (Australia)
  • MAS Sanctions List (Singapore)
  • And 25+ additional jurisdiction-specific lists

Types of Sanctions Exposure Detected

  • Direct match — The screened address appears on a sanctions list.
  • Indirect exposure — The screened address has transacted with a sanctioned address (with hop distance reported).
  • Entity match — The screened address is attributed to a sanctioned entity.
  • Fuzzy match — The screened address is similar to (but not identical to) a sanctioned address.

A direct sanctions match results in a Critical risk score regardless of other factors. Indirect exposure within 2 hops is flagged prominently in screening reports and should trigger enhanced review procedures.

EU 6th Anti-Money Laundering Directive (6AMLD)

6AMLD expanded the scope of AML obligations, increased penalties for non-compliance, and extended criminal liability to legal persons. Key requirements supported by BlockchainAnalysis.io:

  • Predicate offenses — 6AMLD harmonized 22 predicate offenses across EU member states. BlockchainAnalysis.io's risk scoring model covers exposure to categories aligned with these offenses (fraud, tax crimes, cybercrime, terrorist financing, etc.).
  • Enhanced penalties — 6AMLD introduced a minimum 4-year imprisonment for money laundering and potential liability for legal persons. Demonstrating use of robust compliance tooling is a relevant factor in enforcement decisions.
  • Record-keeping — Minimum 5-year retention for customer due diligence records and transaction data.

US Bank Secrecy Act (BSA) and FinCEN

The BSA requires Money Services Businesses (MSBs), including crypto exchanges and certain DeFi operators, to implement AML programs, file SARs, and maintain records.

How BlockchainAnalysis.io Supports BSA Compliance

  • AML program support — Screening and monitoring tools that form the blockchain analytics component of your BSA/AML program.
  • SAR filing support — Export detailed screening reports with transaction-level data suitable for SAR narrative preparation.
  • Recordkeeping — Automated retention of screening results, reports, and audit trails for the BSA-required 5-year period.
  • Currency Transaction Reporting — Transaction volume tracking to identify activity that may trigger CTR requirements.

UK Money Laundering Regulations (MLR)

The UK MLR 2017 (as amended) applies to crypto-asset businesses registered with the FCA. Requirements include customer due diligence, ongoing monitoring, and suspicious activity reporting.

How BlockchainAnalysis.io Supports MLR Compliance

  • Risk-based approach — The platform's risk scoring enables a proportionate, risk-based approach to customer screening as required by the MLR.
  • Ongoing monitoring — Continuous monitoring with configurable alert thresholds for FCA-registered entities.
  • SAR preparation — Reports formatted for submission to the UK National Crime Agency (NCA).

Staying Current

Crypto regulation is evolving rapidly. BlockchainAnalysis.io tracks regulatory developments and updates the platform accordingly:

  • Sanctions lists are updated within 24 hours of publication by issuing authorities.
  • New regulatory reporting requirements are incorporated into platform updates. See the Changelog.
  • Jurisdiction-specific compliance guides are published as new frameworks are finalized.

Next Steps

BlockchainAnalysis.io — Digital Asset Compliance Platform