Crypto analysis firm Chainalysis secures $30M in Series B funding

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Chainalysis, a cryptocurrency analysis firm, has raised $30 million in Series B funding, as the firm looks to expand into new markets in 2019.

The firm, which works with law enforcement and other agencies to analyze cryptocurrency transaction data to detect illegal activity, also works with financial companies in ensuring compliance with relevant regulations and laws.

The round was led by VC firm Accel, with contribution from Benchmark, the firm which led the Series A round back in April 2018, Chainalysis announced in a blog post.

The funding represents a further vote of confidence in Chainalysis and its services, at a time of increasing mainstream interest in cryptocurrency and blockchain transactions.

While bear market conditions in cryptocurrencies like Bitcoin Core (BTC) continue to prevail, the investment is the latest sign that investors still back blockchain technology companies to grow over the coming years.

Chainalysis plans to use the money to fund its expansion into London, with plans for a new research and development facility in the UK to leverage the country’s position as a global fintech leader. The office will also provide a strategic base for access to clients such as Barclays, with whom Chainalysis has worked closely for several years, according to the firm.

Chainalysis co-founder and CEO Michael Gronager told Fortune that the investment reflects the view of the long term potential in the sector.

“The investment and the timing of it shows that, despite fluctuating prices, there is quite a strong conviction among some very big VCs that this is not a short term play,” Gronager said, according to the news outlet.

Quizzed on Brexit, the process of the United Kingdom leaving the European Union, and whether that would have any effect on plans to setup the London branch, Chainalysis said London remains a leading global financial hub, and one of the key centers for the global fintech industry.