Blockchain analysis company, Chainalysis has recorded a 65% to 100% growth in recurring revenue year-on-year in its Q3 report of 2020.
Chainalysis Growth Owes to Increased Regulations
Chainalysis attributes its growth due to the increased demand from public sector agencies as digital assets are getting increasingly regulated internationally. The company stated that the recent regulations on digital assets have allowed more private companies to enter the crypto space.
The company intends to hire Rakib Azik as the vice president of finance and Betsy Bevilacqua as its vice president of information security. Azik has previously worked in consumer products and software companies. He played strategic a role in launching a successful IPO for software company MongoDB. While Bevilacqua played as a cybersecurity executive in tech giants such as Facebook and eBay.
The blockchain company has also hired new teams for its legal, market development, and technical solutions departments, after laying off 20% of its workforce in late 2019 to focus on profitability.
Working With Both Government and Private Players
Chainalysis has worked with both government agencies and private companies to curb down on illegal activities relating to cryptocurrencies. The firm offers provides investigative tools that help its clients to tie blockchain transactions to real-world entities.
Founder and CEO Michael Gronager said:
“Chainalysis builds trust and brings legitimacy to the future of finance. When law enforcement and regulators become comfortable with digital assets, exchanges are able to grow and financial institutions can enter the ecosystem to safely and responsibly capitalize on this growing asset class.”
Recently, the company has jointly won a $1.25 million contract to aid the Internal Revenue Service (IRS), cracking down on dark coins. Gronager, however, dismissed dark coins, such as Monero and Zcash, as niche coins. He said:
“There will be privacy coins and there will be privacy features but they’re niche products. Long-term it’s not something we should be very concerned about. ”
