KEY POINTS
- Hacken's Extractor is available across major blockchains, including Ethereum and Binance Smart Chain
- The platform integrates real-time threat detection and also provides post-incident reporting and analysis
- The EU's MiCA will come into full force on Dec. 30, 2024, while DORA will be implemented starting Jan. 17, 2025
Leading blockchain security auditor Hacken has launched a next-generation AI-powered platform, Extractor, that will automate security and compliance for Web3 companies, covering some of the most critical aspects of compliance such as AML/CFT (anti-money laundering and counter-terrorism financing), the European Union's MiCA (Markets in Crypto-Assets Regulation), DORA (Digital Operational Resilience Act), and ADGM (Abu Dhabi Global Market) Standards.
Extractor offers companies with a scalable and highly-efficient solutions for various business segments and regulators, at a time when global regulations are tightening and standards like MiCA and DORA are gradually reshaping the world of cryptocurrency business operations.
What is Extractor?
Hacken's Extractor is a monitoring platform that crypto companies can use to ensure that they are always up-to-date with the latest and emerging compliance requirements.
Launched Tuesday, the platform is available for use on major blockchains such as Ethereum, Optimism, Binance Smart Chain, Gnosis, Polygon, Arbitrum, Base, Avalanche, and more.
Extractor is the first-of-its kind Compliance Monitoring Framework for Web3 projects. It simplifies the process of adhering to regulatory standards and unlike other existing solutions, the platform combines AML/CFT, TVL (total value locked) analysis, transaction tracking, and detection of circulating supply into a structured compliance approach.
Threat actors will always exist in every industry, but with the Hacken Extractor, continuous protection and operational resilience is ensured as it integrates real-time threat detection, post-incident reporting, and automated safeguards.
"We developed Extractor to address the critical need for proactive monitoring and compliance in the crypto space. Combining real-time on-chain analysis, AI-powered risk detection, and automated safeguards enables projects to meet strict regulatory requirements while mitigating security risks," Hacken Co-founder and CEO Dyma Budorin said in a press release shared with International Business Times.
Compliance to be a Major Cornerstone of Crypto Starting 2025
The cryptocurrency community is well aware that 2025 will change everything for the industry. In particular, compliance with AML/CFT standards is set to become a global standard.
"Beginning Jan. 17, 2025, DORA's requirements will become enforceable. Non-compliance can result in severe penalties, such as fines of up to 2% of the total annual worldwide turnover or 1% of the average daily global turnover. Operating without compliance is no longer an option for entities serving EU customers," said Valentyna Kondratenko, Hacken's legal counsel.
With the Extractor, crypto companies can rest assured that they will meet global compliance standards that pack risk detection, advanced monitoring, asset protection, and incident recovery planning into a standalone tool.
Aside from the high-security features and necessary monitoring integrations, the platform also provides thorough post-incident root cause analysis and reporting, which is critical in giving crypto projects the proactive ability to improve their systems' resilience and address vulnerabilities over time.
Incoming Compliance Regulations
Governments and regulators are continuously working on evolving the rules for digital assets and blockchain technology. With parts of the comprehensive MiCA framework already enforced, more compliance requirements are coming.
- MiCA – The European Union's MiCA regime comes into full force starting Dec. 30, 2024. Crypto firms doing business in the bloc will be required to comply with stringent regulations around digital assets, such as the publication of a whitepaper, reporting under the framework's guidelines, KYC (know-your-customer) requirements, and many more.
- DORA – This framework is more on ensuring that digital risks in financial markets are managed accordingly. DORA's main goal is to ensure that companies have the necessary "financial soundness" and resilience in operating even if they go through operational disruptions triggered by cybersecurity issues and related threats.
Hacken's Extractor, which has a structured framework, ensures that crypto service providers are ready for compliance at every stage of risk management. It represents Hacken's expertise in blockchain security auditing and also reflects its collaborative efforts with some of the most prominent regulatory bodies worldwide.
