Chainalysis is a blockchain analytics platform that provides critical intelligence and compliance solutions for cryptocurrency transactions. Through its Know Your Transaction (KYT) service, Chainalysis tracks blockchain activity, identifies suspicious transactions, and assigns risk scores to cryptocurrency addresses and users. This enables organizations to screen crypto transactions in real time, ensuring regulatory compliance while preventing fraud, money laundering, and other illicit activities.

Authsignal integrates with Chainalysis KYT to automate security responses based on blockchain intelligence. When you configure Chainalysis within Authsignal's rules engine, you can trigger authentication challenges, blocks, or reviews based on transaction risk signals. Chainalysis assigns risk scores (LOW, MEDIUM, HIGH, SEVERE) and flags sanctioned addresses, while Authsignal automatically applies appropriate security measures based on rules you define.

The integration works through a single API connection within Authsignal's marketplace. Once connected, Chainalysis data becomes available as conditions in Authsignal's no-code rules engine. When a user attempts a cryptocurrency withdrawal or transaction, Authsignal queries Chainalysis about the destination address and user risk score. Based on the response and your configured rules, Authsignal can allow the transaction, require step-up authentication (passkeys, biometrics, re-KYC), flag for manual review, or block outright.

This partnership enables proactive protection rather than reactive fraud management. Instead of discovering suspicious transactions after funds transfer, you identify and stop risky activity in real time. The no-code interface lets compliance and fraud teams adjust security rules independently without engineering resources. You can create layered security: allow low-risk transactions with standard auth, require biometric verification for medium-risk, demand re-KYC for high-risk, and block sanctioned addresses automatically.

This integration is particularly valuable for cryptocurrency exchanges and trading platforms, DeFi protocols handling user deposits and withdrawals, wallet providers processing outbound transactions, financial services adding crypto capabilities, and any platform requiring regulatory compliance for cryptocurrency operations (AML, KYC, sanctions screening).

Who this integration is for:

• Cryptocurrency exchanges and trading platforms managing user withdrawals
• DeFi protocols and platforms handling cryptocurrency deposits and transfers
• Crypto wallet providers processing outbound transactions to external addresses
• Financial institutions adding cryptocurrency capabilities and requiring AML compliance
• Platforms needing real-time sanctions screening and blockchain risk assessment

Common use cases:

• Withdrawal screening - Check destination addresses against Chainalysis risk data before allowing cryptocurrency withdrawals
• Sanctioned address blocking - Automatically block transactions to addresses flagged by Chainalysis as sanctioned or high-risk
• Step-up authentication for risky transactions - Require biometric or passkey verification when Chainalysis identifies elevated risk
• Re-KYC workflows - Trigger identity re-verification when user risk scores escalate to HIGH or SEVERE
• Compliance automation - Meet AML and sanctions screening requirements without manual transaction review
• Fraud prevention - Stop suspicious withdrawal patterns identified through Chainalysis blockchain analysis

Prerequisites:

• Active Chainalysis KYT subscription with API access
• Chainalysis API key
• Authsignal account
• Cryptocurrency transaction flows where you want to apply risk-based authentication

Setup overview:

1. Connect Chainalysis in Authsignal:
   • Log into the Authsignal Portal
   • Navigate to Settings > Marketplace
   • Select Chainalysis from available integrations
   • Click Set up Chainalysis
2. Enter your Chainalysis API key:
   • Paste your Chainalysis API key in the provided field
   • Click Activate to establish the connection
3. Create an action for crypto transactions:
   • Navigate to the Actions section in Authsignal
   • Click Configure a new action
   • Name your action (e.g., "Crypto Withdrawal" or "External Transfer")
   • Click Configure action
4. Set up rules using Chainalysis data:
   • In your newly created action, create rules based on Chainalysis signals
   • Example rule: Block sanctioned addresses
     • Click Create new rule
     • Set outcome to Block
     • Add condition: crypto.isSanctioned = true
   • Example rule: Require verification for high-risk users
     • Create another rule
     • Set outcome to Challenge
     • Add condition: User ID Risk Score = SEVERE
5. Test your integration:
   • Use the testing section in your action configuration
   • Track a test action with sample crypto data:

     {
       "userId": "test-user-123",
       "crypto": {
         "address": "0x1da5821544e25c636c1417ba96ade4cf6d2f9b5a"
       }
     }

• Verify that your rules trigger appropriate outcomes

1. Implement in your application:
   • When users initiate crypto transactions, call Authsignal's track API with crypto address data
   • Handle the response state (ALLOW, BLOCK, CHALLENGE_REQUIRED)
   • For CHALLENGE_REQUIRED, present authentication using Authsignal's client SDKs

Available Chainalysis conditions in Authsignal rules:

• crypto.isSanctioned - Boolean indicating if address is on sanctions lists
• User ID Risk Score - Values: LOW, MEDIUM, HIGH, SEVERE
• Additional Chainalysis KYT data points as exposed through the integration

For detailed implementation guidance and code examples, see the Authsignal Chainalysis integration blog post and Authsignal documentation.