Binance Taps IdentityMind for KYC and AML Solutions

Digital assets operators, including crypto exchanges, are increasingly turning to third-party compliance providers.

Binance, the world’s largest cryptocurrency exchange by adjusted trading volume, has partnered up with IdentityMind to integrate their KYC and AML services.

The new partnership will help streamline existing data protection and compliance measures for Binance’s global operations by incorporating IdentityMind’s compliance, risk management, and fraud prevention solutions.

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“With Binance’s tremendous trading volumes and its rapid expansion plans, compliance is naturally more challenging, especially in this fast-changing market,” said Garrett Gafke, CEO of IdentityMind.

Binance recently launched its new subsidiary Binance Lite Australia which allows Australian users to buy bitcoin with cash. The crypto venue has also enabled users to buy cryptocurrencies with their credit cards through a new partnership with Simplex, an Israeli-based credit card payments processing company.

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Enormous regulatory overhead

IdentityMind provides a SaaS platform that uses AI and machine learning to help compliance teams at crypto firms enhance their risk management for supervising communications and automatically detect suspicious activity like money laundering and market manipulation. The product also analyzes digital identities to enable companies to carry out identity proofing, risk-based authentication, regulatory identification, and to prevent identity fraud.

The cross-border and stateless nature of cryptocurrencies throws up different challenges to regulators, even if they decide to devise formal guidelines to govern the asset class. As such, digital assets operators, including crypto exchanges, are increasingly turning to compliance solutions to help provide background checks on their customers as they find themselves under increasing scrutiny from regulators over possible violation of securities and AML rules.

Commenting on the news, Samuel Lim, Chief Compliance Officer of Binance, said: “The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it.”

“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,” added CEO of IdentityMind.

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