Consulting behemoth KPMG Canada is teaming up with blockchain analytics startup Chainalysis to support businesses in combating the ever-increasing threat of fraud and illegal activity in the digital assets space.
According to a statement released on Wednesday, KPMG hopes to help its clients with advanced blockchain monitoring, support, governance, and risk management through this partnership. This will enable businesses to stay compliant with the constantly changing regulations surrounding cryptocurrencies and to advance their anti-money laundering compliance programmes. According to Kunal Bhasin, partner and co-leader of KPMG Canada’s cryptoassets and blockchain practise, “this collaboration will help to further solidify KPMG’s expertise in forensic investigations and cryptoassets and blockchain technology.”
The decision was made in response to the growing sophistication and prevalence of frauds and exploits in the digital asset market. In 2023, the volume of illicit transactions involving cryptocurrencies reached a record high of $20.6 billion worldwide, as per the Chainalysis 2023 Crypto Crime Report. Sophisticated exploits like SIM swaps and wallet hacks have plagued the industry; most recently, cryptocurrency exchange Poloniex lost roughly $114 million after hackers emptied its hot wallets.
According to Jonathan Levin, co-founder and chief strategy officer of Chainalysis, “layering KPMG’s extensive knowledge and experience in cryptoasset 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.”
KPMG Canada has long been involved in the cryptocurrency space. By establishing its first hub for collaboration between its U.S. and Canadian units, it made its metaverse debut last year. The company also acquired digital art from the World of Women (WoW) NFT collection and added bitcoin (BTC) and ether (ETH) to its balance sheet.