Binance is improving compliance and data security with a new deal with Medici Ventures portfolio firm IdentityMind. It is the world’s largest cryptocurrency exchange. Binance turns to IdentityMind for KYC.
It was announced by IdentityMind in March, that for the exchange’s global operations, it has partnered with Binance to “improve existing data protection and compliance measures”.
According to the announcement, in order to prevent fraud, IdentityMind provides cryptocurrency exchanges a “real-time” platform to comply with know-your-customer (KYC) and anti-money laundering (AML) regulations worldwide. The startup helps cryptocurrency exchanges with:
- client onboarding
- transaction monitoring
- case management solution
Garrett Gafke, IdentityMind CEO and president, said:
“Our risk and compliance platform powered by a patented digital identities engine meet the scale demands of Binance’s global operations while providing a highly accurate system for assessing any global risk factors from outside entities for transactions.”
Binance previously avoided the strict compliance route chosen by other top exchanges such as Coinbase. This stance seems to be taking a shift. Binance turns to IdentityMind for KYC.
Last year a report from Bloomberg said Binance’s KYC processes are “the industry’s least rigorous”. As users only required an email address to open trading accounts with the exchange, it made it hard to track money laundering and market manipulation.
Binance has been making efforts to raise its compliance efforts since then. The exchange partnered with cryptocurrency compliance and investigation software provider Chainalysis back in October. This was to monitor cryptocurrency transactions in real-time and potentially avoid any criminal or illicit activity.