KPMG Canada and Chainalysis Join Forces Against Crypto Fraud

In a move to strengthen fraud detection and risk management in the digital assets sector, KPMG Canada has announced a strategic partnership with blockchain analytics firm Chainalysis. This collaboration marks a crucial step in enhancing the capabilities to combat the growing concerns of fraud and criminal activities in the cryptocurrency space.

Kunal Bhasin, a partner at KPMG Canada, emphasized the importance of this alliance, noting that it significantly boosts their forensic investigation capabilities in the realm of crypto assets and blockchain technology. This partnership comes at a critical time, as the digital asset sector faces increasingly sophisticated threats, including wallet hacks and SIM swaps, which have led to significant financial losses.

The Chainalysis 2023 Crypto Crime Report sheds light on the alarming rise in illicit cryptocurrency transactions, which hit a record $20.6 billion last year. This surge underscores the urgent need for enhanced monitoring and governance in the cryptocurrency domain.

Jonathan Levin of Chainalysis highlighted the potential of this partnership, combining KPMG’s deep expertise in financial crimes related to cryptocurrencies with Chainalysis’s advanced risk management platform. This synergy is expected to provide a more robust defense against the growing incidence of crypto transaction frauds.

KPMG Canada’s venture into the cryptocurrency sector is not a new development. The firm has been actively engaging with the digital asset space, taking significant steps such as venturing into the metaverse, incorporating major cryptocurrencies into its balance sheet, and investing in digital art from the World of Women (WoW) NFT collection.

The collaboration between KPMG Canada and Chainalysis is a testament to the evolving landscape of digital assets and the need for sophisticated solutions to tackle the challenges it presents. As the sector continues to grow, partnerships like these are crucial in ensuring a safer and more secure environment for cryptocurrency transactions and investments.