A major global company that helps fight illicit cryptocurrency-related activity does not recall that privacy in crypto markets is necessarily bad.

Despite representing 1 of the master sources of crypto transaction data for federal agencies similar the Internal Revenue Service and the FBI, Chainalysis does not exactly oppose the privacy and decentralization of crypto.

"Complete transparency is non necessarily an platonic place"

Jonathan Levin, co-founder and CSO at blockchain and crypto analytics house Chainalysis, reiterated his opinion to privacy in crypto, challenge that total transparency of cryptocurrency transactions might not turn out to be the all-time state of affairs.

Speaking in an interview with Cointelegraph, Levin noted that there is yet a demand to back up the ability of regulators and businesses to monitor illicit activity related to crypto, stating:

"There volition be the invention of privacy-enhancing technology. Complete transparency is not necessarily an ideal place to be either, merely ultimately there needs to be the ability for regulators and businesses with the appropriate levels of legal authority and oversight to tackle the illicit activity that abuses the systems."

Speaking to Cointelegraph in Jan, Levin previously outlined the issue of privacy and transparency extremes:

"The two extremes of full anonymity and complete transparency are bad. Consummate anonymity opens the door to illicit activity that, by definition, cannot be investigated. That's not a world you want to live in. On the other hand, complete transparency means no privacy at all. That'due south also not a earth yous want to live in."

Chainalysis "sometimes notice ways to trace some" privacy coins

While Levin appears to support the privacy in crypto in some sense, the Chainalysis co-founder admitted that the company is not yet able to fully trace privacy-focused cryptocurrencies:

"Nosotros may not necessarily be able to track all of the funds in privacy coins but we still perform research on what they are used for. We sometimes detect ways to exist able to trace some of that."

Levin pointed out that the majority of cryptocurrency transactions are conducted on more publicly traceable blockchains like Bitcoin (BTC) and Ethereum (ETH) so far. However, some crypto security firms similar Elliptic believe that privacy coins like Monero (XMR) and Nuance (DASH) are still gaining steady traction and usability despite Bitcoin transactions dominating on the dark market.

Originally prepare up in Kingdom of denmark in 2013, Chainalysis is a New York-based provider of Know Your Transaction and Anti-Money Laundering solutions for financial institutions and regulators in the crypto industry.

The company has emerged as one of the most trusted sources of belittling data on global illicit action in crypto such as terrorism financing, coin laundering and operations on darknet markets. According to Levin, the firm is working with 250 agencies and firms worldwide to date, with its services coverage spanning across 45 countries.

On Feb. 12, Chainalysis partnered with major U.S. dollar–pegged stablecoin project Tether to identify high-risk transactions occurring on its network.