Binance is using Chainalysis’ AML/KYC product to grapple with multiple international jurisdictions’ 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 world’s largest cryptocurrency exchange by volume, continues to expand into various international markets, being required to comply with each jurisdiction’s 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 Binance’s platform.
The solution, known as know-your-transaction (KYT), saw its initial release in April, the press release notes.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,” Jonathan Levin, co-founder and COO of Chainalysis commented in the press release, adding:
“We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”
2018 has seen various well-known exchange platforms — including P2P ecosystem Localbitcoins — 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 “basic” personal information.
Explaining its own implementation of AML and KYC rules, Binance implied such measures were necessary to permit further expansion.
“Our 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,” Binance CFO Wei Zhou said.