Binance, CipherTrace Team Up For Latest Compliance Push
It seems Binance is looking to make more huge steps in the sector. Apparently, the Malta-based crypto exchange is planning to bring forth a multi-pronged push in an attempt to significantly boost compliance procedures across its own platform.
Enhancing AML Processes
According to the official report, the company has announced a new partnership involving CipherTrace. The latter, which is a blockchain analytics firm, is expected to help in enhancing anti-money laundering (AML) processes. This includes tracing the very source of on-chain funds and matching different user IDs directly to wallet addresses with issues.
The head of compliance in Binance named Samuel Lim said in an interview that the company is hell-bent on improving their compliance standards. Lim stated that they are embarking on a journey that would build their own compliance team. Even more so, they are expected to be making re-investments in the compliance space.
The inclusion of CipherTrace takes place on the heels of a newly-formed partnership with IdentityMind, one that has been formed and made possible on know-your-customer (KYC) compliance. CipherTrade is a company backed by venture firms, with Mike Novogratz’s Galaxy Digital being one of these.
Making Trading Experience Better
Interestingly, Binance will also be working alongside Chainanalysis, Blockchain Transparency Institute (BTI), and Refinitiv (Thomson Reuters’ former financial risk department). Through these partnerships, Lim is confident that the firm will be able to provide their users with the best trading experience possible. He added that it is important for them to provide users with a peace of mind, letting them know that the process is safe and does not involve trading with exploiters or crooks.
In a previous report, a Binance account was identified by analytics firm called Whitestream to be allegedly receiving Bitcoin directly from supporters of a military-political entity known as Hamas. The latter is basically a terrorist organization.
It turns out that financial crimes tend to offer a more common risk. This is most especially the case after the regtech company Coinfirm dubbed Binance to be a crypto exchange that may not be fond of enforcing restrictions solely based on KYC requirements.
In another report, Binance trading volumes appear to be hovering over 85 percent authenticity. However, a good number of wash trading volumes were occurring with niche token pairs. This is according to a study performed by BTI, which has promised to crack down all wash trading through the help of Binance.