XChain expands transaction monitoring for UAE VASPs

XChain has announced the rollout of its transaction monitoring services for Virtual Asset Service Providers (VASPs) in the UAE.

The global digital assets risk monitoring provider, which has been the forensic transaction monitoring partner for Dubai's Virtual Assets Regulatory Authority (VARA) since 2022, is expanding its services to cater to institutional and retail VASPs, offering comprehensive lifecycle support for crypto oversight, compliance frameworks, and transaction monitoring forensics.

By equipping VASPs with full visibility on necessary regulatory and compliance frameworks, XChain aims to address key risk factors in on-chain transactions. This initiative allows service providers to gain real-time insights into their risk metrics, establishing a reliable and transparent monitoring foundation, thus enabling proactive risk management tailored to their specific business models.

Haydn Jones, the newly appointed Managing Director of XChain, stated, "With an increasing number of companies looking to tap into UAE's digital assets industry, we are privileged to continue our work streamlining access to on-chain transaction risk-based analytics. It is therefore imperative for the compliance functions within VASPs to have access to the latest thinking, and we are proud to be at the forefront of blockchain forensics and asset monitoring to build a trusted and reliable framework that offers end-to-end support."

Matthew White, CEO of VARA, remarked, "At VARA, we are committed to fostering innovation while ensuring robust regulatory standards for the virtual asset ecosystem. XChain's rollout of its transaction monitoring services represents a significant step forward in enabling VASPs to operate with enhanced transparency and confidence. We are pleased to collaborate with XChain in setting new benchmarks for regulatory technology, which will not only benefit the digital asset sector but also build bridges with traditional financial institutions exploring this space."

In a further effort to enhance the regulatory frameworks for the digital assets sector, VARA and XChain are also developing a regulatory dashboard tool. Expected to launch in a beta version later this year, this tool aims to advance existing on-chain transaction monitoring standards. The dashboard is set to deliver real-time on-chain data and open-source intelligence from VASPs, fostering the integration of a unified risk monitoring tool that aligns with the highest standards in Virtual Assets Regulatory Technology. The tool is anticipated to be valuable for both VASPs and traditional financial (TradFi) institutions within the digital assets landscape.