The digital asset industry has shifted dramatically in recent years, incorporating compliance and regulatory oversight into every business decision. A key regulatory milestone in 2024 is the Markets in Crypto-Assets (MiCA) regulation, the EU’s first comprehensive framework for crypto. MiCA introduces strict licensing, stablecoin rules, and investor protections, making compliance a non-negotiable factor.
While Fireblocks leads many discussions about digital asset custody and compliance, businesses increasingly seek alternatives that match their specific goals, technical needs, and budget realities.
This blog explores how Bitquery and other alternatives like Chainalysis, Elliptic, and CipherTrace cater to compliance needs and why Bitquery stands out as a complete blockchain monitoring solution.
Understanding Fireblocks
Fireblocks earned its place in the market by combining custody solutions with compliance tools. The platform lets businesses create governance controls for transaction approvals, ensuring fund movements stay within both internal guidelines and external regulations.
The platform distinguished itself by weaving AML and KYC compliance into its core functions. Transactions flow through verification points, creating clear records that meet regulatory standards. This system flags potential issues quickly, helping businesses address concerns before they grow into regulatory problems.
Fireblocks offers features tailored for transaction compliance, including:
- Policy Enforcement: Customizable governance controls for transaction approvals.
- AML/KYC Support: Tools for anti-money laundering (AML) compliance.
- Audit Trails: Logs and records to meet regulatory requirements.
- Real-Time Monitoring: Tracking suspicious activities and identifying anomalies.
Yet as crypto markets evolve, some organizations find limitations in Fireblocks’ transaction-focused approach. While it excels at securing asset transfers and maintaining compliance records, many businesses now need deeper analysis tools, especially for examining intricate transaction patterns in DeFi markets.
Bitquery’s Data-First Strategy
Bitquery takes a data-centered view of compliance. Unlike Fireblocks, it focuses on tracing money through levels, mixers, tornado cash, and other complex entities.
The platform’s Coinpath algorithm showcases this strategy. These tools map financial movements across multiple steps and blockchains, giving compliance teams insight into potential money laundering attempts or questionable fund flows. For more insights into blockchain observability, explore this blog on Blockchain Data Observability.
Key Features:
- Coinpath APIs for transaction tracing and fund flow analysis.
- AML/KYC Support for compliance monitoring.
- Real-time analytics for DeFi protocols and smart contracts.
- Cross-chain Investigation Tools for tracking assets across multiple chains.
Strengths:
- Advanced analytics and compliance tools.
- Developer-friendly APIs for integrations.
Limitations:
- No custody or transaction execution services.
Bitquery’s strength shows in its DeFi protocol analysis. As decentralized finance grows more intricate, standard compliance tools often miss critical details. Bitquery tracks smart contract interactions, liquidity pools, and bridge transfers, helping compliance teams watch areas that traditional tools might overlook.
The platform appeals particularly to development teams. While Fireblocks provides ready-made solutions, Bitquery offers tools for building custom compliance systems. This flexibility helps organizations with specific regulatory needs or those working across multiple jurisdictions.
Chainalysis
Chainalysis built its name on investigative capabilities. The platform dissects complex transaction patterns to spot potential criminal activity. Its Know Your Transaction (KYT) system evaluates risk based on historical data and pattern recognition. These tools draw particular interest from law enforcement, crypto exchanges, and regulatory bodies conducting detailed investigations.
Elliptic
Elliptic centers on AML compliance, offering targeted tools for wallet screening and transaction monitoring against sanctions lists. Their analysis helps catch suspicious patterns in DeFi protocols that might signal money laundering. Banks and financial firms often choose Elliptic to demonstrate their commitment to AML regulations.
CipherTrace
CipherTrace, now integrated with Mastercard, brings established compliance practices to crypto markets. The platform leads in travel rule compliance implementation, addressing growing regulatory scrutiny of crypto transactions. Their wallet and transaction risk assessments help businesses evaluate potential partners.
Comparison Table: Compliance Features
| Platform | Use Case | Features | Ideal For |
| Fireblocks | Custody with Compliance Tools | AML/KYC, governance controls, and audit logs | Institutions managing custody and compliance. |
| Bitquery | Compliance Analytics and Tracking | Coinpath APIs, AML support, cross-chain investigations | Auditors, compliance teams, and researchers. |
| Chainalysis | Forensics and Investigations | KYT, risk scoring, and investigation tools | Regulators, exchanges, and law enforcement. |
| Elliptic | AML and Risk Management | Wallet screening, sanctions, and DeFi monitoring | Financial institutions need AML compliance. |
| CipherTrace | AML and Compliance Intelligence | Risk scoring, travel rule compliance, and auditing APIs | Fintech companies and compliance teams. |
How Bitquery Outshines Fireblocks
1. APIs for Comprehensive Data Access
Bitquery’s APIs allow businesses to build custom blockchain monitoring solutions, unlike Fireblocks, which focuses on custody and governance. To see how FATF indicators can enhance compliance, check out this article.
Developers can:
- Track asset flows in real-time.
- Analyze smart contract interactions.
- Investigate multi-chain transactions.
2. Cost-Effective Compliance Monitoring
While Fireblocks targets large institutions managing custody and transfers, Bitquery provides scalable tools for smaller teams and compliance-focused use cases.
3. DeFi Protocol Monitoring
Bitquery’s analytics extend to DeFi protocols, enabling monitoring of:
- Token swaps.
- Liquidity pools.
- Smart contract interactions.
4. Deep Blockchain Forensics
With cross-chain tracing capabilities, Bitquery excels in investigating:
- Money laundering schemes.
- Fraudulent activities.
- Complex token transfers.
Conclusion
Regulations grow more detailed, and innovation brings new challenges. Success requires tools that scale and adapt to your business.
While Fireblocks is an excellent platform for secure custody and compliance, Bitquery emerges as a comprehensive alternative for businesses prioritizing blockchain monitoring, analytics, and compliance. Learn how to utilize Bitquery for compliance and analytics in this guide. Its API-first approach, cost-effectiveness, and multi-chain capabilities make it an indispensable tool for auditors, developers, and compliance teams.
If you want to enhance your compliance and monitoring capabilities, Bitquery might be your solution. Whether you select Fireblocks, an alternative, or multiple tools, ensure your choice supports both immediate needs and long-term plans in digital assets. View compliance not as an obligation but as a way to build confidence with regulators, partners, and customers.
