Mai Nguyen
ChainTracer is the product of the cooperation between Vietnam Blockchain Association (VBA) and Anti-Phishing Social Enterprise Co., Ltd., founded by Mr. Ngo Minh Hieu (Hieu PC).
ChainTracer’s mission is to provide an onchain and offchain blockchain data tracking solution, detect signs of fraud in digital assets, and become a bridge for traditional asset users to transition to owning assets. digital assets based on blockchain technology.
Faced with the growing financial crime situation for business and society, many companies are having to comply with anti-money laundering (AML) and risk management regulations. However, the implementation of these regulations is not simple and requires the support of technology platforms to reduce complexity.
According to PwC’s “Global Economic Crime and Fraud” 2022 report, 51% of more than 1,000 organizations have faced economic fraud in just 2 years, which is the highest level that PwC has recorded over the past 20 years.
In new technology areas such as Web3, Chainalysis’s financial crime report shows that the number of illegal transactions in this market has reached 20.6 billion USD, of which a large part comes from fraudulent activities.
With the rise of financial crimes in new technology areas such as Fintech, Web3, etc., regulators are tightening compliance with regulations. For example, in Europe, to prevent financial crime, the recently passed Cryptocurrency Markets Act (MiCA) is seen as an addition to the existing Anti-Money Laundering Directive (AMLD) in the EU. European Union (EU), where MiCA provides a more specific regulatory framework for digital assets. As a result, digital asset service providers need to fulfill AML obligations such as Customer Due Diligence and report suspicious transactions to the regulator.
In addition to the AML/CFT (anti-money laundering/anti-terrorist) obligations under the Financial Action Task Force (FATF), the financial-banking industry also faces many pressures to apply Basel standards. III, IFRS 9 for risk management, while balancing business development and customer base expansion.
Source: BearingPoint
Therefore, the need for tools to reduce the complexity of legal compliance in the fields of technology, finance – banking becomes inevitable. Many companies and projects have been established with the goal of providing solutions for detecting and preventing financial crimes and managing risks, among them are Chainalysis, CertiK, CipherTrace, Elliptic ,…
In Vietnam, pressure on legal compliance is also increasing recently. It is a clear fact that the introduction of the new Anti-Money Laundering Law earlier this year, effective March 1, 2023, aims to address the limitations of the 2012 AML/CFT law and adapt it. with international AML/CFT standards.
The collapse of major international banks such as Silvergate, Silicon Valley Bank, Signature Bank is also one of the factors promoting the application of Basel III, IFRS 9 standards in the banking industry for the purpose of risk management, enhance competition.
The Vietnam Blockchain Association places the task of legal compliance at a high priority, especially in the fields of technology and finance. In 2023, the ChainTracer Anti-Phishing project, a product of the Vietnam Blockchain Association in collaboration with Anti-Phishing Social Enterprise Co., Ltd., was born.
This project provides an open source of data for the community and authorities to search for free, in order to support investigation and verification, thereby contributing to the management and compliance of international AML, creating provides a reference basis for the Ministry of Industry and Trade to promote the meeting of AML standards in money management activities.
Mr. Hieu Ngo – a key member of the Information Security Committee of the Vietnam Blockchain Association – is leading the ChainTracer project. This is a project with a clear vision on blockchain transaction tracing to strengthen AML/CFT (anti-money laundering/anti-terrorist financing) activities.
Mr. Ngo Minh Hieu (Hieu PC), member of Information Security Committee of Vietnam Blockchain Association introduced ChainTracer platform
In the process of discussing the advantages and challenges of implementing the project in Vietnam, Mr. Hieu shared: “Currently, the project is receiving considerable attention from the community, especially those working in the project. working in Web3. This is an optimistic sign that a large number of people are actively approaching information security-related issues, even in new areas like Web3.”
However, he also emphasized that: “Web3 is still a new field, which makes it difficult to predict the sophisticated methods of hackers. Tracing will become more complex and demanding. participation of many experts in the field related to blockchain analysis to determine behavior, cash flow and time, to better understand the transparency of the development team behind Web3 related projects” .
Mr. Hieu added: “We can only be limited to warning, blocking websites with signs of fraud, or marking wallet addresses with obvious signs of fraud and demanding money.” .
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The ChainTracer platform is an in-depth analysis tool that draws on on-chain transaction activity and compares them with known scam models. Its goal is to do a careful assessment to determine whether a project is a scam. Identity models are developed specifically for the Web3 space, but at the same time apply lessons and experiences learned from Web2 phishing patterns. Furthermore, the ChainTracer platform offers a host of other powerful functions. It is the analysis of market behavior to detect manifestations of inflation. It provides detailed analysis reports on ICO, IDO, IEO projects, to assist investors in determining whether a project has elements of fraud or not. In particular, one of the most ingenious and difficult to detect hidden profit techniques is the use of bots and MM models by pool management experts – also in the sights of ChainTracer. The platform has the ability to identify and warn about suspicious behavior during liquidity analysis, in order to protect users from potential risks. |