Chainalysis — a cryptocurrency compliance and investigation solutions provider — announced it has raised $6 million from leading Japanese venture firms, closing its Series B funding round at $36 million.
The investment comes from two firms: Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial institution; and Sozo Ventures, a Tokyo and US-based venture firm with a focus on Japanese markets. It follows the $30 million raised via Accel in February, and serves to expand Chainalysis’ business in Asia Pacific.
Michael Gronager, CEO at Chainalysis, described in Tuesday’s press release how “cryptocurrency technology is global and inclusive by design”. He continued:
“Our business was founded on the belief that in order for the industry to grow, all its stakeholders – governments, financial institutions, and cryptocurrency businesses – must be united in establishing ground truth for the industry. This strategic investment will strengthen our relationships with financial institutions in Asia in particular, and spearhead both our growth and the industry’s advancement in an important region.”
Chainalysis seeks to provide exchanges, financial institutions, and governments with the means to detect and prevent cryptocurrency money laundering, fraud, and compliance violations.
The firm has two flagship products: Chainalysis Reactor, an investigation software suite that assists law enforcement in preventing illicit crypto activity, such as in tracking cryptocurrency addresses from random notes; and Chainalysis KYT, a compliance software suite that helps businesses and exchanges automate anti-money laundering (AML), among other features.
The expansion of Chainalysis — who, at present, have offices in London, Copenhagen, New York, and Washington D.C. — serves to encourage the growth of cryptocurrency worldwide. Indeed, as MUFG Innovation Partners CEO, Nobutake Suzuki, concludes:
“Chainalysis’s compliance technology is important to providing the insight and anti-money laundering controls banks need in order to establish next generation compliance frameworks.
Today’s announcement signals our joint commitment to growing the cryptocurrency industry in Japan and Asia Pacific more soundly and broadly.”