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Binance is using Chainalysisâ AML/KYC product to grapple with multiple international jurisdictionsâ regulations.
Crypto compliance provider and research firm Chainalysis announced it had partnered with exchange Binance in a press release Wednesday, Oct. 17, in order to improve its detection of suspicious transactions.
Binance, currently the worldâs largest cryptocurrency exchange by volume, continues to expand into various international markets, being required to comply with each jurisdictionâs anti-money laundering (AML) and know-your-customer (KYC) rules.
Chainalysis eases this process, the firm claims, through the use of real-time monitoring to track the provenance of each transaction made on Binanceâs platform.
The solution, known as know-your-transaction (KYT), saw its initial release in April, the press release notes.
âCryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,â Jonathan Levin, co-founder and COO of Chainalysis commented in the press release, adding:
âWe expect many to follow Binanceâs lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.â
2018 has seen various well-known exchange platforms â including P2P ecosystem Localbitcoins â introduce additional compliance measures, some of which have jarred with cryptocurrency users that value anonymity. As well, in September, crypto exchange ShapeShift introduced a membership program that will gradually become mandatory and require the provision of âbasicâ personal information.
Explaining its own implementation of AML and KYC rules, Binance implied such measures were necessary to permit further expansion.
âOur vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve,â Binance CFO Wei Zhou said.
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