A study conducted by MetaComp reveals that up to 25% of risky transactions involving stablecoins USDT and USDC may go unnoticed due to shortcomings in current compliance systems.
Research Methodology
MetaComp analyzed 7,000 transactions involving USDT and USDC across the Ethereum and Tron blockchains. The study compared the outcomes from four leading KYT providers: Chainalysis, Elliptic, Merkle Science, and Beosin. The findings indicated that relying on just one or two tools allowed one in four risky transactions to go undetected.
Recommendations for System Improvement
The company advocates for a layered approach to transaction screening. 'For institutions operating in regulated environments, it's no longer viable to rely on a single KYT provider,' said Tin Pei Ling, Co-President of MetaComp. He also emphasized that implementing three tools reduces the false positive rate to below 0.10%, while maintaining processing speeds under two seconds.
Concerning Trends in Cryptocurrency Transactions
The study identified significant threats, including links to sanctioned wallets, stolen funds, and darknet markets. The percentage of risky transactions on the Tron network was notably high, at 6.95%, compared to just 0.70% for Ethereum. MetaComp also highlighted five industry-wide weaknesses: fragmented risk coverage, inconsistent categorization, lack of standardization, operational complexity, and processing delays in multi-tool environments.
Thus, the study's results emphasize the need for stricter control measures and a comprehensive approach to monitoring transactions in the cryptocurrency space.
