FCA is on the hunt for a crypto forensics service provider
The City regulator is looking to appoint a third-party crypto forensics service provider.
According to a tender offer published by the Financial Conduct Authority (FCA), the contract is valued at £500,000 with a deadline of 16 December and a tenure of almost two years, ending on 6 December 2023, although the contract may be subject to extensions up to a further 24 months.
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The FCA is seeking a blockchain analysis solution to enhance its capability to perform analysis of cryptoasset blockchain data and to identify and respond to risks identified through the analysis of cryptoasset blockchain data.
The regulator said the solution will also help it to use cryptoasset blockchain data to support the effective supervision of in scope cryptoasset activity.
The FCA scope of this procurement exercise is to secure a platform that provides an array of functions.
These include: the capability to visualise, review and export cryptoasset blockchain data to support FCA functions, apply robust analytical techniques to support the efficient review of cryptoasset blockchain data, provide data on attribution of cryptoasset addresses and support users of the platform with training and specialist support on an ongoing basis.
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“As the supervisor of in scope cryptoasset activity in the UK, the FCA requires access to specialist services to support the analysis of cryptoasset blockchain data,” the FCA’s tender said.
“The FCA is seeking the services of a third-party firm specializing in this area who can provide access to a platform that can support the robust and efficient analysis of cryptoasset blockchain data and provide training and ongoing support in the use of this platform…
“The analysis of cryptoasset blockchain data is an essential aspect of the FCA toolkit when approaching its duties as supervisor of firms carrying out certain cryptoasset activity in the UK.
“The development of this capability is closely aligned with operational objectives of the FCA and has applications in the prevention of harm to consumers, in enhancing the integrity of the UK financial system and in promoting competition.”
In September, City regulator Nikhil Rathi has claimed that FCA is working to implement blockchain, API technology and machine learning to quicken compliance checks.
The FCA has also repeatedly highlighted the risks of investing in cryptocurrencies.
