Victor Ugochukwu · Dec 14, 2020 . 5min read
Cryptocurrency intelligence platform Coinfirm integrates Chainlink Oracle
DeFi projects can leverage Chainlink's oracle which then pulls and relays in real time, Coinfirm's AML data.
By Victor Ugochukwu · Oct 31, 2020 . 5min read
London-based cryptocurrency intelligence and analytics firm Coinfirm has struck a partnership with Chainlink, an industry leader in decentralized oracle service into DeFi and the burgeoning smart contract ecosystem.
Coinfirm released an announcement to this effect that its anti-money laundering and compliance solution will help make on-chain data readily available for DeFi projects in a plug and play version.
Coinfirm cites some of the risks associated with the DeFi industry as the motivation behind this partnership with Chainlink. For instance, the permissionless nature of most DeFi protocols allows for both good and bad. We saw it recently where KuCoin’s hacker used Uniswap to launder funds stolen. With Coinfirm’s solution, it will be easy for any interacting address with such as KuCoin’s hacker to pull data on-chain to know if the address has been blacklisted for any financial crime or related crimes.
And for DeFi protocol developers who already built their solution, they wouldn’t need to start re-architecting their solution. All they need to do is to leverage Chainlink’s oracle, which then pulls and relays in realtime, Coinfirm’s data.
In a similar scenario, a bank could also employ this solution. They can do this to help with strict compliance in off-chain smart contract payment. It does this by cross-referencing the address against OFAC lists and Coinfirm’s AMLT risk scores.
Other possibilities that Coinfirm’s partnership with Chainlink brings in areas of AML and Compliance for smart contracts
The solution can also help in limiting wallets that have received funds from anonymizing services like mixers. Although this some can argue this to be anti-privacy, compliance and regulatory advocates will laud this as good.
This solution can also help in blocking wallets that have received funds from criminal websites. Lastly, Coinfirm’s solution can also be used for whitelisting addresses across multiple Defi product or services.
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