KPMG Canada and Chainalysis Join Forces Against Crypto Fraud

KPMG's Canadian division has taken a significant step in fortifying corporate defenses against the rising threats of fraud and criminal activities within the digital assets sector. The firm has entered into a strategic alliance with Chainalysis, a prominent blockchain analytics company, with the primary objective of empowering organizations to navigate the dynamic landscape of crypto regulations while enhancing their anti-money laundering (AML) compliance initiatives.

Leveraging its proficiency in forensic investigations, cryptoassets, and blockchain technology, KPMG aims to offer advanced solutions, including blockchain monitoring, support, governance, and risk management, to its clients through this partnership. The overarching goal is to provide businesses with the necessary tools not only to comply with evolving crypto regulations but also to strengthen their AML frameworks. Kunal Bhasin, Partner and Cryptoassets and Blockchain Co-leader at KPMG Canada, stressed the strategic importance of this collaboration in consolidating KPMG's position in forensic investigations and cutting-edge technologies.

This collaboration comes at a crucial moment as the digital asset sector grapples with a surge in sophisticated exploits and fraudulent activities. According to the Chainalysis 2023 Crypto Crime Report, there were record-breaking global cryptocurrency-based illicit transaction volumes of $20.6 billion last year. The industry has witnessed a proliferation of intricate schemes, including wallet hacks and SIM swaps. Notably, the cryptocurrency exchange Poloniex lost approximately $114 million due to hackers exploiting vulnerabilities in its hot wallets.

Jonathan Levin, Co-founder and Chief Strategy Officer at Chainalysis, emphasized the intrinsic value of integrating KPMG's extensive knowledge in cryptoasset financial crimes with Chainalysis' industry-leading risk capabilities. This synergy aims to provide organizations with a comprehensive strategy to mitigate fraud risks associated with crypto transactions.

KPMG Canada's proactive engagement in the cryptocurrency sector is evident from previous initiatives. The company ventured into the metaverse by establishing a collaborative hub between its U.S. and Canadian units. Additionally, KPMG demonstrated its dedication to the digital asset space by incorporating bitcoin (BTC) and ether (ETH) into its balance sheet. The firm's involvement with the World of Women (WoW) NFT collection reflects a versatile approach to embracing the evolving landscape of cryptocurrencies and blockchain technology.

In conclusion, the strategic partnership between KPMG Canada and Chainalysis represents a concerted effort to address the growing challenges posed by fraud and criminal activities in the digital assets sector. Through the combination of KPMG's expertise and Chainalysis' analytical capabilities, the collaboration aims to equip businesses with robust tools and insights to navigate the intricate landscape of crypto regulations and elevate their AML compliance programs.

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