algorand foundation

The Algorand Foundation to Integrate Chainalysis KYT for Transaction Monitoring and Compliance

The Algorand Foundation will be leveraging Chainalysis’ Know Your Transaction (KYT) for transaction monitoring and compliance processes after its integration.

Investigations and due diligence will be enhanced by using Chainalysis KYT for Algorand’s native token, ALGO. The Algorand Foundation is led by Turing award-winner Silvio Micali and a renowned team of cryptographers to build an open-source, public blockchain for an inclusive ecosystem.

“Algorand is committed to providing an inclusive, transparent, and secure system for its global users,” said Algorand Foundation’s Chief Operating Officer (COO), Fangfang Chen, in a release shared with Blockchain.News.

“We needed a compliance partner that could not only help us adhere to regulations in Singapore where we are based but also global regulatory best practices. This will enable us to build the best transaction monitoring solution for the Algo token so that we can realize our mission of providing the world’s first open, permissionless, pure proof-of-stake blockchain protocol securely and scalably.”

With the integration of the Chainalysis KYT, Algorand is able to monitor large volumes of activity and identify high-risk transactions on an ongoing basis.

Chainalysis adds compliance support to track privacy coins Dash and Zcash

Chainalysis has recently launched support for two of the most popular privacy coins, Dash and Zcash. Privacy coins are cryptocurrencies with privacy-enhancing features that allow users to gain total anonymity when making blockchain transactions.

Although privacy coins are known to be used for illicit purposes, research by the RAND corporation mentioned that 0.2 percent of all the cryptocurrency addresses mentioned on the dark web was either for Dash or Zcash.

Although Dash is known for its privacy features, only 9 percent of all Dash transactions make use of mixing transactions related to PrivateSend. This portion of Dash transactions takes up a relatively small and declining percentage of Dash transactions, according to Chainalysis.

Golden Gate University Establishes Blockchain Law for Social Good Center to Aid Regulation

To meet the three pillars of the community, education, research and policy when expanding the knowledge base of lawyers, lawmakers and community members about the social benefits of blockchain technology, the Golden Gate University School of Law has teamed up with Algorand Foundation to set up one of a kind centre.

According to Michele Neitz, the incoming faculty director, the facility named Blockchain Law for Social Good Center aims to eliminate regulatory scepticism by offering lawmakers a comprehensive first-hand view of the blockchain and crypto sector.

She added that the centre would be a stepping stone towards financial inclusion because lawmakers will understand what the industry has to offer as blockchain developers continue generating revolutionary projects to solve existing inequalities.

The Algorand Foundation is funding the centre with a $300K foundational grant to create transparent and inclusive technology needed for a borderless economy.

Hugo Krawczyk expects the facility to become a hub for blockchain law that will benefit startups, lawyers, government agencies, and lawmakers.

The principal researcher and head of Algorand Centres of Excellence Programme pointed out:

“The Blockchain Law for Social Good Center is an excellent example of the multidisciplinary application possibilities for blockchain technology while also promoting social-impact projects.”

The Golden Gate University School of Law is one of the professional graduate schools of Golden Gate University in San Francisco, California.

Therefore, based on its objective of presenting lawyers as honourable professionals worthy of public trust, the centre will aid in the realization of a more balanced regulatory scheme in the blockchain and crypto industry.

With blockchain technology being one of the cutting-edge technologies in the modern era, learning institutions are availing flexible options to attain this skill.

For instance, the Wharton School, a premier business school at the University of Pennsylvania in the United States, recently accepted cryptocurrency as a payment method for blockchain courses through Coinbase exchange.

Image source: Shutterstock

Algorand Foundation Faces $35M Losses from Exposure to Hodlnaut

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The Algorand Foundation, whose mission is to empower the ecosystem of Algorand blockchain cryptocurrency protocol, on Friday announced that it has a $35 million exposure in USDC to Singapore-based troubled crypto lender Hodlnaut. Last month, Hodlnaut halted withdrawals, deposits, and token swaps, citing market volatility.

The Algorand Foundation said the above figure represents 3% of its assets, stating that it does not expect operational or liquidity issues due to its exposure.

“As part of the Foundation’s mission, from time to time, we invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose,” the foundation said.

The Algorand Foundation stated that it is pursuing all legal actions to maximize asset recovery from Hodlnaut.

On August 29, the Singapore High Court appointed Algorand’s nominees, Angela Ee and Aaron Loh of EY Corporate Advisors, to act as the interim judicial managers of Hodlnaut, the foundation said.

Hodlnaut’s withdrawal pause followed other crypto lending firms such as Celsius Networks, Voyager Digital, Babel Finance, and Vauld freezing withdrawals as well.

Hodlnaut suffered heavy losses from the TerraUSD crash. The company had invested some $317 million in TerraUSD (UST), a failed stablecoin, as a way to pass high yields through to its clients.

In May, Terra’s algorithmic stablecoin UST lost its peg and collapsed, directly wiping out more than $43 billion from the ecosystem. The crash inflicted losses of $189.7 million on Hodlnaut.

As a result, Hodlnaut stopped offering exchange services on its platform on August 8, citing a liquidity crisis and the need to work on a recovery strategy as the industry battles to survive in the wake of a collapse in the crypto prices.

Hodlnaut started operating as a lender for clients to borrow digital assets in April 2019. The service also provides a yield-earning feature that enables customers to earn up to 7.25% on their investments. By allowing users to lend money to verified institutions and businesses, Hodlnaut’s incentive structure functioned.

Algorand Foundation Joins Forces with Borderless Capital, Arrington Capital, and DWF to Invest in Pera Algo Wallet

The Algorand Foundation, in partnership with Borderless Capital, Arrington Capital, and DWFLabs, has announced a strategic investment in the Pera Algo Wallet. This investment aims to expedite the expansion and adoption of the Algorand ecosystem by enhancing the capabilities of this self-custodial wallet.

Pera Algo Wallet, an open-source platform, empowers users to securely store, purchase, and trade cryptocurrencies on the Algorand blockchain. The Algorand Foundation’s commitment to providing essential tools and support for ecosystem growth is exemplified by its decision to support and nurture Pera Algo Wallet.

Under the leadership of CTO HYigitGuler, the core engineering team of Pera Algo Wallet will continue to advance the platform’s features and functionality. Oversight of Pera Algo Wallet will be assumed by the Algorand Foundation’s EVP of Ecosystem Growth, mintwt, and Principal Architect, Bruno Martins, who brings a wealth of experience in wallet architecture, mobile applications, applied cryptography, and encrypted messaging systems.

The Algorand Foundation reaffirms its dedication to fostering a diverse ecosystem by pledging continued support for various Algorand wallets, including Defly, Exodus, Fireblocks, Ledger, MyAlgo, DaffiWallet, and more.

Pera Algo Wallet, which recorded over 1 million new app downloads in 2023, will maintain uninterrupted wallet services and customer support for existing users following this strategic partnership.

This investment by the Algorand Foundation underscores its commitment to bolstering the cryptocurrency ecosystem. It is anticipated that this collaboration will pave the way for further advancements within the Algorand network, potentially expanding opportunities for cryptocurrency adoption and utilization.

For those interested in gaining deeper insights into this partnership and its implications for the Algorand ecosystem, the Algorand Foundation will host a live event on their Spaces channel at 12:00 pm EDT.

The Algorand community has enthusiastically received this announcement, with members expressing optimism about the potential use of $Algo for payments on platforms like Shopify. This showcases the growing enthusiasm within the Algorand community.

The Algorand Foundation’s dedication to nurturing the Algorand ecosystem through strategic investments exemplifies its commitment to the blockchain industry’s growth and development.