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List of Top Blockchain Analytics Providers

20 Sept, 2022
Updated: 27 May, 2024
Blockchain Intelligence Grouphttps://blockchaingroup.io/Canada
Chainalysis https://www.chainalysis.com/USA
Coinbase Analyticshttps://www.coinbase.com/compliance/USA
Crystal Intelligencehttps://crystalintelligence.com/The Netherlands
Merkle Sciencehttps://www.merklescience.com/Singapore
TRM Labshttps://www.trmlabs.com/USA

While 21 Analytics is not a blockchain analytics provider, our Travel Rule solution, 21 Travel Rule, can be configured to incorporate any blockchain analytics provider you would like to use. 

How Does Blockchain Analytics Work? 

Blockchain analytics works in 3 ways: clustering, identifying and visualisation.

1. Clustering: 

Clustering simplifies the public ledger to group all the addresses from a wallet of a single entity together, making it easier to see what a wallet is doing.  

2. Identification: 

These methods can vary between blockchain analytics providers, but the end goal is to link an entity to the addresses they use or control. Identification can be made by: making deposits to the services through pattern analysis or thorough research into the address. 

3. Visualisation: 

In this step, an investigator can track the transactions. Are the coins coming from questionable sources, like Darknet Markets? 

Why Is Blockchain Analytics Important? 

Virtual asset service providers (VASPs) and other financial institutions (FIs), such as banks, need to ensure that they comply with regulations in the jurisdictions, and one of the ways of ensuring this is through blockchain analytics. 

With blockchain analytics, these institutions can conduct their due diligence and ensure that the transactions processed are not illicit or fraudulent. These risk insights are paramount for decision-making and minimising financial risk for the involved institution.

What to Look for When Choosing a Blockchain Analytics Provider

As mentioned above, the purpose of blockchain analysis is to aid cryptocurrency companies in assessing the risks associated with their virtual asset transactions. 

Four main questions need to be contemplated when choosing a provider. Please note the list provided below is merely a guide and not exhaustive. Before selecting a blockchain analytics provider, 21 Analytics recommends establishing which regulations or laws are in effect in your jurisdiction. This step will define what you need from your provider. 

1. Which Screening Services Are Offered? 

Screening services should include VASP, wallet and transaction screening. 

VASP screening protects you from businesses that could expose you to risks. An example would be an FI that does not have proper compliance controls in place. 

One of the benefits of wallet screening is that you can ascertain whether the wallet carries a risk before sending any funds. 

Transaction screening allows you to review where a transaction comes from, which helps avoid transactions from jurisdictions that have been sanctioned.

2. Are the Compliance Regulations of Your Region Covered?

As a VASP,  you must be aware of which regulations are active in your region and ensure that you comply with them. Is the Travel Rule live? What are the AML Regulations? These are some questions you should ask your provider before choosing their product. 

3. Is There a Report and Record-Keeping functionality? 

Record keeping and monitoring form an essential part of compliance with crypto regulations. 

Jurisdiction-dependent record keeping needs to be for a minimum of 5 years according to the Financial Action Task Force's (FATF) recommendations.  

4. Is Training Provided? 

Does the provider offer training to compliance officers who use the product? Is the training free? Is it paid for? What other training opportunities does the provider offer?

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