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.
