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KPMG Canada joins forces with Chainalysis to combat crypto fraud

According to Chainalysis's 2023 Crypto Crime Report, illicit crypto transaction volume reached an all-time high of $20.6 billion in 2022

Shashank Bhardwaj
Published: Nov 27, 2023 05:12:14 PM IST

Image: ShutterstockImage: Shutterstock

The Canadian branch of KPMG, one of the Big Four accounting firms, has partnered with blockchain data platform Chainalysis to help organisations combat fraud and illicit activities in the digital assets sector.

Through this collaboration, KPMG will join Chainalysis’ ‘Solution Provider’ program, offering their clients enhanced blockchain monitoring, support, governance, and risk management.

As a part of the program, KPMG professionals will become ‘Chainalysis Certified Investigators’. They will assist clients in detecting and preventing illicit crypto activities, complying with evolving crypto regulations, and improving Anti-Money Laundering (AML) compliance measures.

Kunal Bhasin, crypto assets and blockchain co-leader at KPMG Canada, said, “This collaboration will help to further solidify our expertise in forensic investigations and crypto assets and blockchain technology.”

Chainalysis co-founder and chief strategy officer Jonathan Levin underscored the partnership’s potential, saying, “Layering KPMG’s extensive knowledge and experience in crypto asset financial crimes over our platform’s industry-leading risk capabilities will help provide organisations with a more comprehensive approach to mitigating fraud risks in crypto transactions.”

The alliance between KPMG Canada and Chainalysis arrives amidst broader industry efforts to tackle crypto fraud. The Credit card company Mastercard Inc. recently partnered with Feedzai, an AI-powered regulatory technology platform to combat online money laundering and financial fraud.

Such partnerships are particularly timely, given the recent surge in crypto fraud and crimes. According to the report, illicit crypto transaction volume reached an all-time high of $20.6 billion in 2022.

The sector's vulnerability to cybercrime has been evident through incidents like the $114 million loss suffered by crypto exchange Poloniex due to a security breach in their hot wallet, resulting in unauthorised asset withdrawals.

The rise in crypto-related crime highlights the urgent need for businesses to implement robust security measures to safeguard their assets and customers.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash