Binance Integrates CypherTrace Traveler for FATF Travel Rule Compliance
- The exchange recently received multiple regulatory warnings.
Binance is strengthening its compliance measures after receiving regulatory warnings in multiple jurisdictions. The crypto exchange announced that it has deployed CypherTrace Traveler, which will ensure its compliance with FATF-recommended travel rules.
Traveler performs counterparty due diligence of the virtual asset service providers (VASPs) with the Travel Rule Information Sharing Alliance solution. The system monitors and runs all checks prescribed by the FATF and issues Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) certificates.
CypherTrace’s solution automatically identifies VASP-to-VASP transactions and securely verifies the originating and recipient VASPs. Additionally, it ensures the prevention of data leakage by sharing the transaction-related information only with Travel Rule-compliant institutions.
“We are continuing to invest in our compliance program and technology to further strengthen our standards,” said Samuel Lim, Binance’s Chief Compliance Officer. “We are proud to partner with CipherTrace to deploy their Traveler compliance solution. As always, we are committed to providing a superior product for our users, one that is secure, decentralized and meets global compliance standards.”
Binance has become one of the first cryptocurrency exchanges to deploy CypherTrace Traveler, which was launched in March 2021. The exchange’s urgency to streamline its compliance might also have been pushed by recent regulatory setbacks.
Regulatory Concerns
Though Binance claims that it adheres to the required compliances in all its operational jurisdictions, the exchange received multiple regulatory warnings. Most recently, the United Kingdom’s FCA warned against Binance Markets Limited, saying that the company is not authorized to operate in the country. Days before, Japan’s FSA said that Binance is illegally operating in the country.
But, CipherTrace’s solution is more oriented towards tackling the possibilities of money laundering, rather than the exchange’s jurisdictional issues.
“We are confident that Traveler will help Binance to continue to meet the highest standards for global Anti-Money Laundering compliance, particularly as Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of VASPs tightens in jurisdictions around the world,” said CipherTrade CEO, Dave Jevans.
Binance is strengthening its compliance measures after receiving regulatory warnings in multiple jurisdictions. The crypto exchange announced that it has deployed CypherTrace Traveler, which will ensure its compliance with FATF-recommended travel rules.
Traveler performs counterparty due diligence of the virtual asset service providers (VASPs) with the Travel Rule Information Sharing Alliance solution. The system monitors and runs all checks prescribed by the FATF and issues Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) certificates.
CypherTrace’s solution automatically identifies VASP-to-VASP transactions and securely verifies the originating and recipient VASPs. Additionally, it ensures the prevention of data leakage by sharing the transaction-related information only with Travel Rule-compliant institutions.
“We are continuing to invest in our compliance program and technology to further strengthen our standards,” said Samuel Lim, Binance’s Chief Compliance Officer. “We are proud to partner with CipherTrace to deploy their Traveler compliance solution. As always, we are committed to providing a superior product for our users, one that is secure, decentralized and meets global compliance standards.”
Binance has become one of the first cryptocurrency exchanges to deploy CypherTrace Traveler, which was launched in March 2021. The exchange’s urgency to streamline its compliance might also have been pushed by recent regulatory setbacks.
Regulatory Concerns
Though Binance claims that it adheres to the required compliances in all its operational jurisdictions, the exchange received multiple regulatory warnings. Most recently, the United Kingdom’s FCA warned against Binance Markets Limited, saying that the company is not authorized to operate in the country. Days before, Japan’s FSA said that Binance is illegally operating in the country.
But, CipherTrace’s solution is more oriented towards tackling the possibilities of money laundering, rather than the exchange’s jurisdictional issues.
“We are confident that Traveler will help Binance to continue to meet the highest standards for global Anti-Money Laundering compliance, particularly as Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of VASPs tightens in jurisdictions around the world,” said CipherTrade CEO, Dave Jevans.