Chainalysis Adds Support for Bitcoin Payments on the Lightning Network: Report
Chainalysis provides support for Bitcoin payments on the Lightning Network, and through your transaction compliance software, financial institutions processing Bitcoin payments comply with global anti-money laundering practices. So find out more about the latest Bitcoin news today.
The Chainalysis blockchain data platform will support the Lightning Network as a Layer 2 protocol on the BTC blockchain. The integration will provide platform-compatible software for companies that process BTC payments through Lightning nodes. This also means that virtual asset service providers will handle BTC transactions in accordance with standards, as the spokesperson said:
“There will be no changes to the Lightning Community user interface.”
The term VASP used by Chainalysis in the press release is taken from the recently updated Financial Action Task Force guidelines. This international body supports a number of best practices in the fight against money laundering. He can also impose fines, but he maintains a gray list for countries that he believes need increased supervision and a black list for those who do not cooperate. Listing is likely to lead to economic sanctions from other FATF countries such as the United States.
Recent FATF changes change the definition of VASP to exclude subordinate members who do not suggest or actively support any of these actions, for example, Another change in the update of travel rules has more to do with the type of information that companies can collect through software compatible with Chainalysis. … The travel rule requires financial institutions to exchange data with other companies sending funds, and the FATF states that data for crypto transactions of $ 3,000 or more between VASPs is subject to the travel rule. Product Manager Chainalysis Pratime Arora said:
“The Lightning Community is addressing many of the challenges to using the Bitcoin protocol for micropayments and other types of transactions to improve financial inclusion. By providing our customers with the ability to properly support Lightning transactions, we hope to increase the popularity of the network and scale it up. ”
Launched in 2018, the Lightning Community deployment grew rapidly in 2021, with the number of nodes on the network increasing 68% a year ago, according to Bitcoin Visuals. A Chainalysis spokesman said complying with Your Know Transaction does not include the new tax reporting requirements in the $ 1.2 trillion package signed by the US President.