Robinhood Turns to Chainalysis for Data, Compliance Tools

Robinhood will use Chainalysis software to monitor crypto trades and meet compliance requirements as it prepares to roll out a crypto wallet.

AccessTimeIconDec 13, 2021 at 12:59 p.m. UTC
Updated May 11, 2023 at 7:09 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto tracing firm Chainalysis said it will provide data and compliance tools to Robinhood’s online crypto trading service, Robinhood Crypto.

  • Robinhood (Nasdaq: HOOD) will use the software to meet compliance requirements and help keep accounts safe, Chainalysis said in a blog post Monday.
  • Robinhood Crypto will use Chainalysis KYT to flag “risky and illicit transactions” in real time, and Chainalysis Reactor to help with due diligence into potential suspicious activity.
  • Robinhood has said it expects to make its long-awaited crypto wallet available to all customers by early 2022. The wallets have a waitlist of more than 1.6 million.
  • As consumer access to cryptocurrency grows there is increased attention toward regulatory compliance standards.
  • “Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner,” said Ben Einstein, head of partnerships at Robinhood Crypto.
  • Why Are Layer 2s Important to Watch in 2024?
    00:59
    Why Are Layer 2s Important to Watch in 2024?
  • How Robinhood and Arbitrum Hope to Bring More People On-Chain
    15:54
    How Robinhood and Arbitrum Hope to Bring More People On-Chain
  • Worldcoin’s WLD Drops as Elon Musk Sues OpenAI; Robinhood Teams Up With Arbitrum
    02:15
    Worldcoin’s WLD Drops as Elon Musk Sues OpenAI; Robinhood Teams Up With Arbitrum
  • Why Robinhood Is Expanding Its Crypto Service to Europe
    10:20
    Why Robinhood Is Expanding Its Crypto Service to Europe
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Tanzeel Akhtar

    Tanzeel Akhtar is a reporter based in London,UK.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.