The analytics firm Chainalysis posted a year-on-year doubling of revenue for the third quarter. The driver was ‘increased demand for tools to track cryptocurrency transactions for the purposes of curbing illicit activity’, the firm said.
We’re excited to share some updates on our business and welcome new leaders to our team. If you’re interested in building trust in blockchains to promote more financial freedom with less risk, join us! https://t.co/VHYrFutugR
— Chainalysis (@chainalysis) October 13, 2020
The metric also included the contract to track transactions on the Monero (XRM) network with the U.S. Internal Revenue Service.
Over the past year the company’s client base grew by 65%.
In an interview with Forbes, Chainalysis chief Michael Gronager noted that securing contracts with government agencies creates the foundations for growth in the private sector in the cryptocurrency space.
Gronager argues that the company he leads plays a critical role in developing the nascent industry, providing a channel for dialogue with law enforcement and regulators.
“The incident with the arrest of the Twitter hacker proved a useful illustration of blockchain analytics in law enforcement. Companies in the industry now have an understanding of how to ensure compliance with requirements and regulatory oversight”, he said.
Gronager believes that privacy-focused cryptocurrencies, despite their promising technology, attract insufficient attention to become successful.
“Private coins require liquidity and a large number of people who will begin to use them. Their use cases are better suited for Bitcoin, since it has liquidity”, Gronager says.
The Chainalysis chief is convinced that Monero (XMR) and ZCash (ZEC) will remain niche stories that criminals will not use at scale. He sees no reason for concern about their existence in the long term.
In July the company raised an additional $13 million in an expanded Series B financing round.
At the end of September Chainalysis announced the opening of two new offices in Tokyo and Singapore to expand the business in the Asia-Pacific region.
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