On June 8, blockchain software company ConsenSys launched a new compliance platform, called Codefi Compliance, that provides compliance and analysis tools for the decentralized finance (DeFi) space. 

A preview of the Codefi Compliance platform. Source.

Billed as a “next-generation solution for anti-money laundering (AML) and countering the financing of terrorism (CFT)”, Compliance will help businesses tackle regulatory challenges regardless of jurisdiction. Specifically, it allows financial institutions to maintain anti-money laundering (AML) requirements while examining the behavior of and managing the risks associated with customers - all with anonymity preserved. The announcement reads,

Clients can track asset activities, user behavior, transactions, fund flow and view data analysis for spot trends. Insights derived from Codefi Compliance can help businesses facing dynamic regulations to ensure all requirements are met without interrupting process flows.

However, anonymity will be maintained, as ConsenSys says that its Know-Your-Transaction (KYT) solution preserves the privacy of the parties (something for which Coinbase invited discussion with its own related solution.)

Compliance joins other solutions in the Codefi suite, which has a host of products for optimizing business and working with digital financial instruments. 

The DeFi space itself has been on a rapid rise. It currently has about $1 billion worth of assets locked into the market, with wallet numbers seeing a 529% rise in 2019, according to DappRadar. The synthetic asset Wrapped Bitcoin is increasingly being used, while lending protocol dYdX reached a cumulative amount of $1 billion in loans.