Binance Partners With Chainanalysis To Prevent Crypto Violations. Binance, the biggest cryptocurrency exchange by trading volume($1.04 billion trading volume in the last 24 hours), has partnered with Chainalysis, a company aimed at preventing, detecting and investigating crypto violations.
As part of the partnership, Chainalysis will provide access to its “Know Your Transaction” compliance software, enabling the exchange to monitor cryptocurrency transactions in real-time, according to a press release published October 17, 2018. The tool will, in particular, look for potentially criminal or otherwise illicit activity.
Chainalysis describes the technology in the press release as,
“Chainalysis’ compliance software, Chainalysis KYT (“Know Your Transaction”), is the only real-time transaction monitoring solution for cryptocurrencies. The software uses pattern recognition, proprietary algorithms and millions of open source references. To identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity.”
The tool can also help cryptocurrency companies ease the process of opening bank accounts. This is due to its compliance with relevant KYC (Know Your Client) and AML (Anti-Money Laundering) laws, according to the release.
Co-Founder and COO of Chainalysis, Jonathan Levin, has underscored that crypto businesses do not feel overly safe in the current environment. This is hardly a surprise given that this year alone three major exchanges. This includes Bithumb, Bancor, and Coincheck have been hacked.
It is not solely the hacks which are of concern in this context. Levin points out that it is also challenging for businesses to earn “the trust of regulators, financial institutions and users.”
The present development will help to build confidence in the crypto-market. Levin commented, “Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs. This is to satisfy regulators globally and build trust with major financial institutions.”
Binance CFO, Wei Zhou, said that this step will allow the company to grow further. He also added that Binance, which expects to reach profit levels of $1 billion this year, envisions 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.”
It is commendable how Binance is continuously taking steps toward mass-scale crypto adoption. This summer, for example, Binance partnered with Liechtenstein Cryptoassets Exchange to add a fiat-crypto exchange to it’s offerings. Before that, Binance acquired Trust Wallet in its endeavor to further expand its market.