Binance’s New Partnership Aimed At Compliance Drive
There is no doubt that Binance is one of today’s largest crypto exchanges in the space. Apparently, the company is said to be continuing its efforts in ramping up its very own regulatory compliance efforts. Here is everything about this news in a nutshell.
A New Partnership
According to the official report, the digital currency exchange has just made a partnership with Elliptic, which is a blockchain analytics startup. By doing so, the company would have the ability to improve its compliance and security capabilities.
The new partnership was made official via an announcement from the said blockchain analytics company. The said partnership is deemed to be the third one relating to compliance at least when talking about the topic in the last two months.
Basically, this joint initiative will give Binance a fighting chance against money laundering as it decides to grow into a number of new jurisdictions. This is according to the company’s very own chief compliance officer named Samuel Lim.
Elliptic’s Software
Elliptic reportedly has software specifically designed to help identify potential transactions that are directly linked to illicit activities. This includes, but not limited to, money laundering and terrorist financing. Even more so, the software is said to have been successful in monitoring risks for transactions, all of which are believed to be worth “several trillion dollars.”
Just last month, the crypto exchange company made a new partnership with CipherTrace, which is also a blockchain analytics firm. And pretty much like the new one, this decision is due to its wants of boosting anti-money laundering processes. One of these is the attempt trace the very source of on-chain funds and, more important, match all user identities to wallet addresses deemed to be problematic.
Other Partnerships
It is also worth noting that the company is working with IdentityMind when it comes to know-your-customer (KYC) compliance. This has been made possible after a deal was officially signed in March this year. Another partnership sprung through its efforts of working alongside the Blockchain Transparency Institute, Refinitiv, and Chainalysis.
Binance was just deemed as a company that has “high” regulatory risk with its direct exposure to activities deemed anonymous. The identified was made by Coinfirm, a reg-tech startup. The company’s KYC processes were, in one way or another, believed to be the “least rigorous” one in the sector, something that recent reports suggested.