Updated
GL-C-03
Glossary · Due Diligence and compliance
Crystal Blockchain - the service a bank uses to check your crypto's history
Crystal Blockchain — a platform for analyzing cryptocurrency transactions to assess the risk and origin of funds on the blockchain.
01 / In 30 seconds
The short answer
- What it is
- Crystal Blockchain — a cryptocurrency transaction analytics platform
- What it does
- Assesses the risk and origin of funds on the blockchain
- Who uses it
- Banks, exchanges and compliance departments
- Why
- Check the cleanness of a client’s crypto funds
- How to use it
- Make sure in advance that the history is transparent
02 / In plain words
What Crystal Blockchain means
Crystal Blockchain is a cryptocurrency transaction analytics platform used to assess risks and check the origin of crypto funds. Like other such systems, it relies on the public nature of the blockchain: it analyses chains of transactions, assigns risk scores to wallets and transactions and shows the links between funds and various sources — from legitimate exchanges to risky or illegal addresses.
Platforms of this kind have become a standard compliance tool in the crypto world: banks, exchanges and payment services use them before accepting crypto funds or converting them into ordinary money. The aim is to make sure that the client’s cryptocurrency is not linked to money laundering, sanctions, fraud or other risks, and that its origin is transparent.
For a person whose wealth includes cryptocurrency the conclusion is simple and practical: crypto funds are checked no less strictly than ordinary ones, and sometimes more closely. A transparent history and an evidenced origin are the pass through such a check. We help assess the client’s crypto history in advance and prepare documents on the origin, so that the analytics reveal no unexpected problems.
A case from practice
A client converts cryptocurrency into ordinary money through a bank. The bank runs the funds through transaction analytics and assigns a risk score. We check the wallets’ history in advance and prepare an explanation of the origin, so that the risk score is clean and the conversion goes through without blocks.
Where the analytics are used
- Checking the origin of crypto funds
- Due diligence for crypto wealth
- Converting cryptocurrency to fiat
- Exchange and bank compliance
- Risk scoring of wallets and transactions
- Preparing evidence of the source
03 / What it covers
What matters about Crystal Blockchain
What it is
- Transaction analytics
- Risk scoring
- Chain analysis
What it assesses
- Source of funds
- Links with sources
- Risk level
Who uses it
- Banks and exchanges
- Payment services
- Compliance
For the client
- Crypto is checked strictly
- Transparency is needed
- Evidence the source
04 / How it works
How to prepare a crypto history
Assess the wallets’ risk profile
We check the wallets' risk scores before approaching the bank.
Gather the history of the origin
Purchases, exchanges, income - where the crypto came from.
Explaining the path of the funds
A description of the funds' path with statements and trades.
Passing the check
The bank or exchange runs the funds through analytics.
A transparent source
The origin is confirmed and the withdrawal goes through without blocks.
05 / Key facts
What you need to know
01What it is
Blockchain analytics
The platform traces transaction chains and gives wallets and transactions a risk score.
02Who uses it
Banks, exchanges, payment services
Before accepting crypto or converting it into ordinary money.
03What they look for
Links to risky addresses
Laundering, sanctions, fraud, darknet. Links to them raise the risk score.
04For the owner
Stricter than ordinary money
A clean history and documents on origin are what gets you through such a check.
Common mistakes
Thinking crypto is not checked
Prepare for the check just as you would for ordinary money.
Mixing clean and risky funds
Keep funds with a clear history in separate wallets.
Cashing out without a history of origin
Gather exchange statements, trades and an explanation of the funds' path before cashing out.
06 / Expert advice
How to prepare in advance
If your wealth includes cryptocurrency, assess the risk profile of your wallets in advance and gather the history of the origin: earnings, purchases, exchanges, transfers. Avoid mixing clean funds with risky ones. Prepare a clear explanation of the path of the funds. Then analytics such as Crystal Blockchain in compliance will confirm transparency rather than reveal a problem.
What we do for you. We prepare a client’s crypto wealth for strict transaction analytics: we assess the wallets’ risk profile, gather the history of the origin and explain the path of the funds. That way, when converting or being checked, the crypto shows a transparent picture and low risk rather than becoming an unexpected obstacle.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
A cryptocurrency transaction analytics platform: it assesses the risk and origin of funds on the blockchain and assigns risk scores to wallets and transactions.
To make sure that the cryptocurrency is not linked to money laundering, sanctions or fraud and that its origin is transparent. It is the standard of crypto compliance.
Banks, crypto exchanges and payment services — before accepting crypto funds or converting them into ordinary money.
No less strictly than ordinary money, and sometimes more closely. A transparent history and an evidenced origin are the pass through the check.
How closely the wallet and transactions are linked to risky sources. A high risk raises questions; a clean history with low risk passes.
Assess the wallets’ risk profile in advance and gather the history of the origin of funds. We help prepare the documents so that the analytics show a clean result.
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