Huobi will monitor illegal cryptocurrency transactions

Star Atlas security tool will automatically detect suspicious transactions and freeze the accounts related to them.

Singapore-based Huobi Group announced yesterday the launch of on-chain analytics tools to monitor illegal cryptocurrency transactions on its digital assets exchange.

According to the press release, the new security tool called Star Atlas, aims to create a safer trading environment and ease regulator concerns that cryptocurrencies are easily manipulated by criminals.

The tool will monitor virtual currency transactions on one of the most active crypto exchanges Huobi to identify high-risk behaviors and detect crimes like fraud, money laundering, and other illicit activities.

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This will be done by analyzing real-time on-chain transactions and flagging suspicious activities for further investigation. The flagged accounts will be temporarily restricted from withdrawing assets until additional verification requirements are satisfied.

Ciara Sun, Global Business VP at Huobi Group said, that only a small percentage of digital asset transactions are illicit, despite the fact, even the minority of “bad actors” is a stain to the entire industry.

Previous links with shady transactions

The launch of Star Atlas comes just after Huobi Korea announced the delisting of Monero (XRM) cryptocurrency last week. The official reason for ending support for XRM trading on Huobi exchanges was “low trading volumes and anonymity functions.” However, South Korean media accused Monero to be used for criminal activities.

Additionally, the security update appers just before the relaunch of Huobi exchange to the US market, which is expected later this month. The San Francisco-based Huobi US suspended its operations five months ago due to unannounced regulatory issues.

However, suspicious grew after blockchain analysis company Chainalysis released their Money laundering in cryptocurrency report last year. The research revealed that Huobi exchange was the second-biggest platform after the Binance for illicit operations when nearly 25% of $2.8 billion illegal Bitcoin (BTC) transactions were made through it in 2019.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia