A Deeper Look at the Partnership – and Why It Matters for the Future of Crypto Compliance
For years, compliance teams across exchanges, custodians, brokerages, payment companies, and regulated digital-asset businesses have asked for a practical way to connect the two halves of crypto AML compliance that have always operated separately:
1. Collecting counterparty identity data for every transfer
2. Institutional-grade on-chain AML risk intelligence capable of identifying sanctions exposure, illicit activity, cross-chain behavior, layering, and high-risk entities
Lukka’s partnership with CryptoSwift finally closes that gap.
CryptoSwift gathers and transmits originator/beneficiary information required under global Travel Rule regulations.
In the EU, the Travel Rule became fully mandatory for all CASPs on December 30, 2024, with no minimum transaction threshold under the Transfer of Funds Regulation (EU 2023/1113), making complete sender and receiver information a regulatory requirement for every transfer.
Lukka provides the on-chain AML intelligence regulators expect: more than 380 risk indicators, proximity-based tracing up to 250 hops, real-time monitoring, entity due diligence, and advanced investigative tooling trusted by the most risk-mature institutions.
Together, we deliver a unified AML workflow: counterparty identity data and on-chain risk detection operating with institutional precision.
Why This Partnership Matters Now
Global regulators including FATF, MAS, Hong Kong’s SFC/HKMA, and U.S. policymakers under the GENIUS Act are accelerating enforcement expectations for digital asset businesses. Across these regimes, compliance is shifting toward a model where institutions must demonstrate an integrated understanding of each transfer, combining who is involved with how the assets have moved, to meet both identity requirements and on-chain AML obligations.
Across jurisdictions, regulatory guidance increasingly emphasizes:
- Trusted and complete originator/beneficiary information sharing, aligned with FATF Recommendation 16
- Validation of counterparty data, including detecting missing or incomplete information before or when a transfer is acted on, as outlined in FATF and EU process guidance (“receive → validate → act”)
- Consistent assessment of transactional risk, including indirect exposure and cross-chain behavior
- Documented, defensible decision-making, supported by audit-ready evidence
The urgency comes from the fact that regulators are no longer evaluating AML programs on whether institutions monitor transactions, but on whether they can demonstrate complete traceability, identity certainty, and documented reasoning for every decision.
This is where the partnership becomes essential. CryptoSwift ensures that identity data exchanged between counterparties is complete, compliant, and transmitted through an interoperable and secure framework. Lukka provides the risk intelligence, behavioral analysis, and evidence-grade reporting needed to interpret that data with regulatory confidence.
Together, they give institutions a single, consistent view that connects identity, behavior, and risk, enabling compliance teams to meet rising expectations without duplicating effort or relying on fragmented tools.
Institutional Trust, Security, and Data Integrity
For regulated institutions, AML effectiveness is only half the requirement – the integrity, security, and governance behind the data matter just as much. Lukka’s Blockchain Analytics platform is built on the same controls frameworks relied upon by the world’s largest custodians, government agencies, fund administrators, and financial institutions.
Lukka’s platform and operational environment meet leading global assurance standards, including:
- SOC 1 Type II
- SOC 2 Type II
- NIST Cybersecurity Assessment
These controls demonstrate rigorous oversight across data quality, operational processes, security, and technology governance – providing compliance teams with the assurance that every AML decision is backed by verified, audit-grade data and reliable infrastructure. This institutional foundation is a core reason Lukka is trusted across traditional finance, digital-asset markets, and the public sector.
CryptoSwift’s Travel Rule Compliance Expertise
CryptoSwift serves as a Travel Rule messaging platform, capable of transmitting outgoing and incoming transactions. While sending originator and beneficiary information in case of withdrawals has become the norm in all FATF-compliant jurisdictions, handling counterparty information for deposits is applied more loosely.
Regulators will, however, increasingly expect beneficiary VASPs to ensure that this data is complete and correct, so crypto businesses should get ahead of the requirements. Verifying VASPs and risk levels via blockchain analytics data with Lukka is a critical step for doing so.
Unmatched Coverage Across the Digital Asset Ecosystem
Lukka’s Blockchain Analytics platform provides one of the most comprehensive views of global crypto activity available on the market today. The platform supports:
- 107+ blockchains
- 1.8M+ digital assets
- 1B+ tagged blockchain addresses
This breadth of coverage ensures institutions can assess counterparties, trace fund flows, and detect hidden risk with a level of completeness and accuracy not achievable with partial-data solutions.
When paired with CryptoSwift’s originator and beneficiary information, this coverage becomes even more powerful – enabling institutions to connect identity and on-chain behavior with unprecedented precision. CryptoSwift supplies the trusted identity data, while Lukka provides the risk intelligence that shows what those addresses have done on-chain. Together, they provide identity assurance at the Travel Rule layer and deep behavioral visibility at the blockchain layer, forming a unified compliance view regulators increasingly expect.
What This Partnership Unlocks for the Industry
Complete AML Coverage
By aligning sender/receiver information with high-fidelity on-chain risk intelligence, Lukka’s partnership with CryptoSwift closes the long-standing gap between identity assurance and blockchain risk assessment. Institutions can evaluate both who is transacting and what their wallets have done across chains – within a single, continuous compliance view.
Operational Efficiency
When Travel Rule identity information from CryptoSwift is used alongside Lukka’s investigative and monitoring tools, analysts can work with complete, structured information from the outset. This reduces time spent reconciling counterparties, chasing missing data, or manually tracing flows, enabling faster and more defensible decisions across crypto transaction monitoring and investigations.
Regulatory Alignment
The combined workflow aligns with FATF recommendations (including the Travel Rule), MAS guidelines, SFC/HKMA expectations, and U.S. requirements such as the GENIUS Act. Institutions gain visibility into counterparties and blockchain behavior and can document every step in an audit-ready manner that meets the rising bar for global supervision.
Market Trust
Platforms that pair trusted identity exchange with institutional-grade blockchain risk intelligence offer a higher standard of safety for consumers, institutions, and liquidity partners. Lukka’s partnership with CryptoSwift reinforces the credibility of compliant digital-asset businesses and supports ecosystem-wide confidence in transaction integrity.
Inside Lukka’s Blockchain Analytics – The Engine Behind the Partnership
- 380+ risk indicators across sanctions screening, crime, fraud, terrorist financing, anonymity services, owner risk, transactional patterns, and more.
- C-Score (0–99) derived from an explainable risk model with risk-increasing, decreasing, and informative flags.
- Automated proximity risk analysis that traces indirect exposure up to 250 hops.
- Owner, geographical, and industry risk analysis, based on clustering and regulatory data.
- Token, NFT, and financial behavior analysis, including transaction history, turnover, balance changes, and activity patterns.
- Cross-blockchain exposure analysis for addresses involved in bridging activity.
- Audit-ready PDF or API output, with full documentation of risk indicators and evidence.
In short: AML Risk Reports turn raw, complex on-chain behavior into a structured, defensible risk narrative.
Entity Due Diligence (EDD)
- Licensing and registration details, verified against regulatory authorities.
- KYC process evaluation, categorized as full, limited, or no KYC.
- Adverse media and negative news, with linked sources.
- On-chain risk exposure, showing direct and indirect interactions with high-risk counterparties; indirect exposure is tracked up to 250+ hops.
- Business activity classification (exchange, lending service, ATM operator, DeFi service, payment processor, etc.).
In short: EDD provides a complete, regulator-aligned risk profile for any crypto entity.
Business activity classification (exchange, lending service, ATM operator, DeFi service, payment processor, etc.).
Monitoring Panel
A real-time monitoring system for ongoing AML oversight. Capabilities include:
- Alerts for risk-score changes, risk-level changes, balance movements, and address activity.
- Real-time transaction and balance monitoring across all supported blockchains.
- Configurable categories and custom thresholds, allowing each address group to have its own monitoring rules.
- A full historical record of transactions, alerts, balance changes, and risk changes.
In short: Monitoring Panel provides continuous oversight with customizable alerting and complete audit trails.
Omni & Investigator (Forensics & Deep Tracing)
These tools power advanced multi-chain investigations and automated tracing:
- Multi-chain and cross-chain tracing, following funds across numerous protocols.
- Automated source-of-funds and destination-of-funds tracing, generating complete paths without manual graph work.
- Support for multiple forensic methodologies, including FIFO, LIFO, Pro-Rata, and Taint-Last – methods recognized in legal settings.
- Court-admissible evidence generation, delivered as structured tables and downloadable files.
- De-mixing analysis, enabling identification of flows through mixers or anonymizing services.
In short: Omni and Investigator deliver scalable, defensible tracing used in fraud, crime, and asset-recovery investigations. Its efficiency can save up to 3-4 days of manual work.
Use Cases Enabled by the Partnership
Instant Transaction Screening
Handle payer and payee data via CryptoSwift; on-chain risk evaluation via Lukka.
Faster, More Accurate Customer Onboarding
External addresses and VASP onboarding flows evaluated in real time.
Unified Travel Rule + AML Oversight
End-to-end visibility into both identity and blockchain behavior.
Regulatory and Audit Readiness
Case files prepared for STRs, FIU inquiries, and supervisory reviews.
Conclusion: A New AML Standard for Digital Assets
Lukka’s partnership with CryptoSwift delivers the full spectrum of modern AML capabilities that regulators expect and institutions require:.
- Šender and receiver information
- Deep, explainable on-chain risk intelligence
- Multi-chain forensic tracing that uncovers hidden exposure
- Real-time blockchain AML monitoring
- Fully documented, audit-ready evidence
- A streamlined, defensible end-to-end AML workflow
With CryptoSwift ensuring compliant identity-data exchange and Lukka delivering the behavioral and risk intelligence that regulators expect, institutions finally have a unified framework that satisfies the full intent of the FATF Travel Rule from end to end.
Together, Lukka and CryptoSwift establish a new benchmark for digital-asset compliance – unifying identity, risk, and investigative intelligence into a single, regulator-aligned framework. This collaboration gives institutions the clarity, coverage, and confidence needed to operate at global scale, built on transparency, trust, and institutional-grade data.
Talk to Our Team
Bring unified AML coverage to your organization.
Contact us: https://lukka.tech/contact-us
Learn more: https://lukka.tech
For more information on CryptoSwift’s Travel Rule solutions and interoperable identity framework, visit cryptoswift.com or contact their team directly.
