Binance Exchange Integrates Chainalysis’s AML Tools
Cryptocurrency exchange Binance has partnered with blockchain analysis and compliance solution provider Chainalysis to integrate its software into its system, writes CoinDesk.
As part of the collaboration, Chainalysis will provide Binance with access to its customer identification software, allowing the exchange to track transactions in real time. In particular, it will help her to identify criminal transactions and other illegal activities..
Binance CFO Wei Zhou said he expects his company’s latest move to “inspire” other industry players to become more active in the fight against potential money laundering and terrorist financing..
“The ultimate goal of our collaboration with Chainalysis is to create an environment where everyone feels safe,” he said. “We believe that the fight against money laundering should be collaborative and proactive”.
While Binance is already taking steps to identify customers and curb illegal activity, Zhou notes, “Criminals are always looking for holes in the system, so we are constantly monitoring new technologies and methods to combat money laundering.”.
Chainalysis uses a combination of pattern recognition technology, proprietary algorithms, and various publicly available resources. If suspicious activity is detected during the transaction, the software will send a warning.
The tool can even help cryptocurrency companies gain access to banking services as it meets anti-money laundering and customer identification requirements, the press release said..
Chainalysis Co-Founder and COO Jonathan Levine argues that cryptocurrency market players “must build greater trust in the data and technology that underpins our ecosystem” in order to further develop it..
“By working with industry leaders like Binance, we can lay the foundation for a reliable marketplace in all jurisdictions,” he said..