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Using Crystal in Capital Market Companies and Organizations

Cryptocurrencies are growing in popularity as a financial vehicle and investment opportunity. Below are a few examples of how a financial institution can use the Crystal platform for their customers:

Automated due diligence on crypto assets for AML/CTF Compliance
Use of Cryptocurrency Analytics in KYC Procedures
Crystal for AML/CTF
Crystal in KYC

Automated due diligence on crypto assets for AML/CTF Compliance

This use case actively utilizes Crystal's Risk Score and Entity Name features.

Crystal provides real-time Risk Score (RS) estimation for owners of crypto-wallets. It is an objective, math-calculated value that indicates an Entity's relation to known 'bad actors' (i.e. darknet marketplaces) VS trusted blockchain participants (i.e. exchange services with proven KYC procedures).

The Crystal database contains more than 20 million wallet addresses owned by more than 30,000 entities.

For automated transaction acceptance procedure:

  • Get a source address of the transaction and feed it to Crystal API. As instant response, Crystal provides a RS value for the owner of the address.
  • Based on the RS, the funds can be accepted (RS below 25%), sent back to the sender (RS over 70%) automatically, or conveyed for additional investigation with Crystal Pro or Express (see below).
  • RS thresholds can be adjusted.
  • In case of using Crystal Pro, you can update Crystal's database with the names of entities known only to you – for future reference for better KYC, e.g. for clients black-listing. The added names will be stored in your local Crystal Pro's database only.

If the RS value is around 30% to 60%, it is recommended to conduct an additional investigation.

To perform the CTF/AML check on a transaction:

  • Feed the transaction's ID to Crystal's Explorer tool to get its list of transactions.
  • Use the Visualization tool to see more Input transactions and find the most risky ones. You can pinpoint cryptocurrency owners who initiated risky transactions and find out the nature of the risky entities.
  • Use the Tracking tool to find the destination of the funds and check it against the sanctions lists, e.g. the SDN list (CTF check).

For example

A client might have received an unsolicited transaction from an untrusted entity, increasing his own risk value unnecessarily.

Or, a client might have conducted the transaction via several nodes (wallets) to conceal the funds' connection to a suspicious origin (ML-case). In this case, the RS value may be lower than 70%, but it still holds suspicious funds. With Crystal's Visualization and Tracking tools you will be able to see the entire history of all transactions and addresses involved. You can save the Visualization, share it with your colleagues, or export it as an external file for other investigations.

Integration Support for Crystal API

In some scenarios, having blockchain information integrated into analytical tools produces the most efficient results.

For this, Crystal API product offers a simple programming interface that supplies cryptocurrency analytics as blocks of data for integration into your adopted tools.

Crystal team provides support services to facilitate the integration of Crystal API into your analytical tools.

For more information on the Crystal API and an estimation of your integration project please contact us at: 
support@crystalblockchain.com

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