Daily Markup #893: Merkle Science empowers regulators with Web3 analytics and security tools to tackle cybercrime

Ching Yee Ho

December 13, 2023 · 2 min read

Sheriffs of the wild, wild west of Web3

The last couple of years have been rocky for the wild, wild west of Web3, but it’s undeniable that the space has expanded dramatically.
Blockchain has been used to bolster security and increase transparency, while cryptocurrencies can help make payments and investment opportunities more accessible.
Technology can be a double-edged sword used with good or bad intentions. In 2022, criminals raked in over US$20B through nefarious activities like ransomware, money laundering, terrorism financing, and even kidnapping.
Decentralized finance (DeFi) has become an especially valuable vehicle for criminals because it is less regulated, making it hard for authorities to track down the humans behind the machine.
According to Mriganka Pattnaik, Co-founder & CEO of 500-backed blockchain analytics platform Merkle Science, regulators are often one step behind in this new dimension of cybercrime.
To keep up, they need to work with technology companies like Merkle Science to build a safe environment for cryptocurrencies to flourish by enabling greater compliance and security.
The team started out by supporting crypto companies in looking for ways to mitigate the risks posed by criminals. More recently, their scope has expanded to government agencies and regulators from across the world, working to collectively address this issue by bridging the gap between public and private sectors.
Mriganka shared that Merkle Science’s four main products were designed for a multi-pronged approach to managing crypto crime:
- Compass, a compliance operations tool to help companies monitor, assess, and score the risks associated with crypto transactions.
- Tracker, provides forensic capabilities that help enforcement agencies locate illicit funds.
- Know Your Blockchain Business, provides risk scoring of crypto companies for regulators and financial institutions.
- Institute, developed to train people on the nuances of blockchain analytics.
“When risk-based compliance policies and controls are in place and enabled by blockchain analytics tools, it’s more likely for us to see legitimate players and sustainable growth,” he concluded.
Read the full story on Tech in Asia.