Huobi crypto exchange has launched an on-chain analytics tool known as Star Atlas, to monitor crypto transactions for illicit activities on the platform.
According to the report, this new tool aims to create a safer trading environment and ease regulatory concerns that cryptocurrencies are used by criminals for illicit activities. The launch of this tool emphasizes Huobi’s efforts to expand its security measures beyond local requirements.
As stated in the report, Star Atlas is a new security tool that introduces a new level of transparency to help monitor crypto transactions. The tool helps in the identification of high risk behaviors and detect crimes like fraud and money laundering. It analyzes on-chain crypto activities in real time to detect suspicious or problematic transactions for further investigation.
In an attempt to fish out such illicit activities on the platform, Star Atlas does not compromise on the privacy of traders. It only singles out and track illicit activities on the platform. Moreover, the tool provides a visual user interface so Huobi administrators can easily track the transaction paths of illicit activities.
In addition, Start Atlas maintains a large address library with millions of tags and large number of blacklisted addresses, which is being updated automatically. This will enable Huobi to more efficiently detect malicious accounts, as well as dark web transactions among numerous complex transactions.
According to Ciara Sun, the VP of Global Business of Huobi Group, although a relatively small percentage of crypto transactions are involved in illicit activities, it still stains the industry. Sun added that, being one of the most active crypto exchanges, Huobi deems it a responsibility to take a leading role in preventing the few bad actors from ruining the reputation of the whole industry at large.
In an earlier Chainalysis report, the blockchain analytic firm revealed that Huobi and Binance exchanges were responsible for processing a significant amount of all illicit bitcoin transactions. However, with the launch of this new tool, it is expected to help Huobi address some of these issues.