The NFT market is growing, and crypto firms are now working to ensure they curb money laundering from the space.
Chainalysis and Dapper Labs to fight money laundering in the NFT space
Dapper Labs, the startup behind NBA Top Shot, announced earlier today that it has partnered with the blockchain analytics firm Chainalysis. The partnership will see the duo combine to fight money laundering in the nonfungible token (NFT) space.
The NFT market has experienced massive growth, with our recent report revealing that the trading volume in the last quarter was over $10 billion. With the huge capital in the market, money laundering and other vices could become an issue.
Per the partnership agreement, Dapper Labs will leverage Chainalysis’ blockchain analytics tools to monitor transactions and ensure better compliance to regulatory guidelines. In addition to that, Dapper Labs will leverage Chainalysis Know Your Transaction (KYT) to flag suspicious activity and its Reactor to investigate those interactions.
Naeem Bawla, Associate Director of Compliance of Dapper Labs, stated that
NFTs are one of the most exciting spaces in cryptocurrency, but they will only be successful in the long term if we can ensure a safe environment for our customers. We’re thrilled to partner with Chainalysis to keep potential bad actors off our platform, combat money laundering, and at the same time, stay on top of the quickly-evolving local and global regulatory and compliance space.
Dapper Labs’ NFT dominance is growing
Dapper Labs is one of the leading NFT startups in the world. In recent weeks, the Canadian startup partnered with the Spanish Laliga to create NFTs for the professional soccer body. It had a similar deal with the American National Football League. Dapper Labs is best known for developing the NBA Top Shots NFT marketplace.