Binance, Chainalysis Partner To Address Global Crypto Money Launderingbr>
Binance, one of the world’s largest crypto exchanges by market capitalization, is working with Chainalysis, provider of crypto compliance and investigation solutions, to improve its detection of suspicious transactions.
Chainalysis announced Wednesday that it has completed a global roll-out of its compliance software, Know Your Transaction (KYT), with Binance to help address the challenges at the intersection of cryptocurrencies, regulators and traditional financial institutions. Chainalysis claims that KYT is the only service of its kind and will provide transaction monitoring services in real-time. The solution can also help crypto firms to ease the process of opening bank accounts, due to its compliance with relevant know your customer (KYC) and anti-money laundering (AML) regulations.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,” said Jonathan Levin, Co-Founder and COO of Chainalysis. “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.”
Chainalysis’ compliance software uses pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of crypto services to raise live alerts on transactions involved in suspicious activity. It can compile customer profiles over time, so one suspicious move could lead to a review of all transactions by a specific user.
Wei Zhou, CFO at Binance, said that criminals are always looking to loopholes in the system, so they are continuously on the lookout for new technologies and methods to combat money laundering and malicious actors.
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth,” said Zhou. “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.”