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The correct choice highlights the importance of understanding the risks associated with virtual asset service providers (VASPs) through blockchain analytics. This is crucial because VASPs are often involved in the provision of services that could potentially facilitate money laundering, fraud, or other illicit activities. By utilizing blockchain analytics, compliance professionals and regulators can scrutinize transaction patterns, identify suspicious activities, and assess the overall risk profile of different service providers.

This risk analysis can lead to more informed decision-making regarding partnerships with VASPs or investment in certain platforms, ultimately contributing to enhanced due diligence and compliance with anti-financial crime regulations. Blockchain analytics empowers organizations to monitor transactions in a manner that helps mitigate exposure to financial crime risks across the crypto-ecosystem.

The other choices do not accurately reflect the core benefits of blockchain analytics. For instance, while tracking on-chain transactions is indeed possible, monitoring off-chain activities poses significant challenges, and the complete traceability of transactions can vary based on the blockchain in question. Additionally, the assertion that transactions cannot be traced across blockchains is inaccurate; advanced analytics techniques can trace transactions even as they move across different networks. Lastly, while blockchain analytics can lead to improved attribution over time, it may not always provide instant results due to the complexity and