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 BTC payments are complying with global anti-money laundering practices. So read more on the breaking bitcoin news today.
The Blockchain data platform Chainalysis will support the Lightning Network as a Layer 2 protocol in the BTC blockchain. The integration will provide platform-compliant software for companies that process BTC payments through Lightning nodes. This also means that virtual asset service providers will process BTC transactions in a standard-compliant manner, as a spokesman said:
“There won’t be any changes to the Lightning Community user experience.”
The term VASP, as Chainalysis uses in the press release, comes from the recently updated guidance of the Financial Action Task Force. The international body maintains a number of best practices for combating money laundering. It can also impose fines, but keeps a gray list for countries that it believes need increased surveillance and a black list for those who do not cooperate. Inclusion on one of the lists appears to lead to economic sanctions from other FATF countries such as the USA.
Recent FATF changes change the definition of VASP to exclude subordinate participants who do not offer or actively support any of these activities, such as Another change to the travel rules update has more to do with the type of information companies can collect using Chainalysis-compatible software. The travel rule requires financial institutions to share data with other companies sending funds, and the FATF states that data for crypto transactions of $ 3,000 or more between VASPs falls under the travel rule. Chainalysis Product Manager Pratime Arora said:
“Lightning Community addresses many of the challenges preventing the Bitcoin protocol from being used for micropayments and other types of transactions in order to increase financial inclusion. By enabling our customers to properly support Lightning transactions, we hope to grow the network in popularity and scale it up. ”
The Lightning Community rollout, launched in 2018, 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 Your Know Transaction compliance does not include new tax reporting requirements in the $ 1.2 trillion package signed by the President of the United States.