Chainalysis Partners with Lukka to Integrate Off-Chain Data in VASP Risk Product

Blockchain analysis firm Chainalysis has announced a strategic partnership with Lukka, a leading provider of data and software solutions, to enhance its Virtual Asset Service Providers (VASP) risk product. This collaboration aims to improve the ability to assess VASP-related risks by integrating off-chain data with Chainalysis’ existing tools, providing users with a more comprehensive understanding of potential exposure and counterparty risks in the cryptocurrency market.

VASP companies play a central role in the crypto ecosystem, serving as intermediaries that facilitate access and adoption for both retail and institutional users. However, the risks associated with VASPs, such as exposure to illicit activity or regulatory non-compliance, can be significant. Chainalysis has developed a “know-your-VASP” feature that allows users to analyze on-chain transactions, helping them understand the risk levels of different crypto platforms.

This tool is valuable for a wide range of users, including financial institutions, crypto businesses, regulators, and investors. One of its key functions is automatic risk scoring, which provides alerts when a VASP’s risk level changes. This is particularly important given the scale of illicit activity in the crypto market—illicit addresses reportedly received over $40 billion in 2024 alone.

The integration with Lukka will enhance this risk assessment by adding off-chain data, such as regulatory licenses, legal entity names, and jurisdiction information. The ability to screen both on-chain and off-chain data will give users a more complete picture of a VASP’s operations and risks.

Chainalysis explains that having access to both on-chain and off-chain information is vital for thorough due diligence and compliance. By combining these data sets, the new tool will help users quickly assess whether a VASP is worth further investigation, ultimately saving time and resources.

The collaboration aims to improve risk detection, enhance compliance, and help organizations better track illicit activities within the cryptocurrency space. It is also expected to provide valuable insights that can be used to develop better solutions for customer protection, ensuring that businesses and investors can make informed decisions while navigating the evolving crypto landscape.