In a bid to revamp its compliance procedures, Binance has partnered with blockchain analytics firm CipherTrace.
According to the April 11 announcement, the partnership will enhance the crypto exchange’s compliance methods by introducing robust anti-money laundering (AML) rules.
Commenting on the partnership, Samuel Lim, chief compliance officer at Binance, said: “The selection of CipherTrace as our on-chain security solution will augment our expansion drive and build greater trust among our users, regulators and financial institutions. This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion.”
Aligning with compliance needs
Earlier this year, Finance Magnates reported that the Silicon Valley-based blockchain security firm raised $15 million from venture capitals. CipherTrace, with its solutions, is focusing to cater to the government, regulators, and auditors.
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In March, Malta, one of the most crypto friendly jurisdictions on the globe, appointed CipherTrace to monitor the regions crypto compliances by keeping a tab on crypto transactions passing through local exchanges and digital wallets.
“As one of the most trusted cryptocurrency exchanges on the globe, Binance is leading the way in AML compliance programs for the industry,” Dave Jevans, CEO of CipherTrace, said.
“With regulators in the world’s most progressive jurisdictions that encourage innovation also using CipherTrace to assess and monitor risks of licensed cryptocurrency businesses, we are looking forward to helping the crypto economy grow by raising the level of transparency and trust in the overall market. We expect many others to follow Binance’s lead and are excited to help pave the path.”
The demand for blockchain security services increased drastically in recent years as major crypto exchanges are pushing for global expansion.
Earlier this year, Coinbase acquired Neutrino to prevent illegal dealings in crypto using its platform. The deal, however, became a nightmare for the US-based exchange due to its founder’s ties with the infamous Hacking Team.