BSV Blockchain and Global Ledger recently announced a new partnership to bring full support and anti-money laundering (AML) solutions to the BSV blockchain and community.
As a new service provider, Global Ledger will provide the tools and on-chain analytics to ensure the security and compliant growth of BSV blockchain projects and ventures. The collaboration will also focus on enhancing blockchain security, compliance, and project growth for the BSV ecosystem.
BSV Blockchain recently had an opportunity to sit down with Paul Densley (Head of Sales at Global Ledger) to discuss what the new partnership means, the current crypto asset regulatory space, Teranode and other important topics.
The edited interview is included below.
What are the most significant opportunities you see for Global Ledger’s collaboration with the BSV Blockchain in the coming years?
Densley noted that one of the key benefits of the partnership is driving BSV blockchain adoption. ‘By providing robust AML and compliance solutions specifically tailored for the BSV blockchain, Global Ledger can make the blockchain more attractive to businesses and enterprises. He said this can significantly contribute to the growth and adoption of the BSV blockchain.
Another key advantage is setting industry standards, he said. He noted that the two groups are in a position to collaborate on developing compliance standards and best practices for the BSV ecosystem. This will not only enhance security but also foster trust and legitimacy, he said.
A key part of this is Teranode, BSV blockchain’s scaling solution, which presents unique opportunities to develop innovative compliance tools that can handle massive transaction volumes and complex data analysis, he said. ‘This collaboration can lead to groundbreaking advancements in blockchain analytics’
He adds that both organisations can work together to educate regulators, businesses, and the public about the benefits of BSV and the importance of robust compliance frameworks.
What do you see as the biggest challenges in applying compliance solutions to a fully scalable blockchain like the BSV blockchain?
PD: One of the biggest challenges in applying compliance to a scalable blockchain is data volume and velocity, Densley said. ‘Teranode enables high transaction throughput, which translates to massive amounts of data. Analysing this data in real-time to detect suspicious activity presents a significant technological challenge.’
He adds that balancing compliance requirements with user privacy is crucial. Developing solutions that can identify illicit activity without compromising sensitive data is a key challenge. ‘The regulatory landscape for cryptocurrencies is constantly changing. Compliance solutions must be flexible and adaptable to keep pace with new rules and requirements.’
What are the key regulatory hurdles that projects on the BSV blockchain will need to overcome in the next few years?
Clear regulatory guidelines on the classification of tokens and digital assets on the BSV blockchain are needed, Densley said. ‘ Projects may face challenges navigating licensing requirements for operating on a blockchain, especially in different jurisdictions.’
He adds that compliance with data protection regulations like GDPR is essential, especially when handling personal data on a public ledger. This includes implementing robust AML and KYC procedures that meet regulatory standards
Does the scalability of the BSV blockchain, particularly with the Teranode paradigm, require a different approach to how your services (like GL Vision and GL Monitoring) operate?
Densley noted that Teranode’s scalability requires a different approach. Global Ledger’s services like GL Vision and GL Monitoring need to be optimised to:
- Handle massive data: They need to efficiently process and analyse the large volumes of data generated on the BSV blockchain.
- Real-time analysis: To be effective, these services must be able to identify suspicious activity in real time.
- Scalable infrastructure: The infrastructure supporting these services needs to be scalable to accommodate the growth of the BSV ecosystem.
How do you strike a balance between privacy and transparency when working with a public ledger like the BSV blockchain?
Densley said this is a critical aspect and that Global Ledger can achieve this balance by:
- Selective disclosure: Only revealing necessary information to relevant authorities for compliance purposes.
- Data anonymisation techniques: Employing techniques to anonymise sensitive data while preserving the ability to track illicit activity.
- Compliance with privacy regulations: Adhering to data protection regulations like GDPR.
- Transparency about data usage: Being transparent with users about how their data is collected and used for compliance purposes.
Blockchain often faces negative associations, particularly around illicit activities like money laundering. How does Global Ledger work to move beyond these associations and promote the positive applications of the technology?
Densley said that Global Ledger can contribute to this by:
- Highlighting positive use cases: Showcasing how BSV and blockchain technology can be used for legitimate and beneficial purposes, such as supply chain management, identity verification, and secure data storage.
- Educating the public: Actively participating in efforts to educate the public about the potential of blockchain technology and dispel misconceptions.
- Collaborating with law enforcement: Working with law enforcement agencies to demonstrate how blockchain analytics can help combat financial crime.
- Promoting ethical standards: Advocating for ethical practices and responsible use of blockchain technology.
How do you see the role of AML solutions evolving as blockchain technology continues to mature and integrate into traditional financial systems?
As blockchain technology matures, AML solutions will need to become more sophisticated: Employing advanced analytics and AI to detect complex patterns of illicit activity, Densley said. This includes seamless integration with traditional financial systems and other blockchains, and staying ahead of the curve as new digital assets and financial instruments emerge.
‘Balancing the need for compliance with increasing demands for user privacy. The collaboration between Global Ledger and the BSV Blockchain holds significant promise for the future of the BSV blockchain. By addressing the challenges and embracing the opportunities, they can contribute to creating a secure, compliant, and thriving BSV ecosystem,’ he said.
