A crypto exchange based in Malta named Binance is undertaking a multi-pronged push to help spread compliance systems over its platform.
Keeping that in mind, Binance is declaring a new partnership with CipherTrace which is a blockchain analyzing firm. This association would help to upgrade AML practices like following the origin of on-chain funds and coordinating client IDs to faulty wallet addresses.
“We are very serious about improving our compliance standards,” head of compliance at said. He also added that
“We will continue to build our [compliance] team, continue to re-invest in the compliance space.”
The integration of the platform with a company like CipherTrace, which is supported by Mike Novogratz’s Galaxy Digital, would impact partnerships of companies like IdentityMind on know-your-client (KYC) compliance procedure. Binance also works with Chainalysis, Refinitiv and the Blockchain Transparency Institute (BTI).
“We want our users to have the best trading experience, to know that they are safe that they are not trading with crooks or bad actors.”
For instance, one analytics company named Whitestream found out the Binance account which was reported to receive bitcoin from military-political groups like Hamas, which are claimed by the US authorities as a deemed militant association.
One regtech company named Coinfirm also claimed that the exchange might impose financial risks too as sometimes it does not make it obligatory for the users or traders to uphold limitations dependent on KYC necessities.
Following the same thread, a BTI report published this week found that in spite of the fact that Binance trading volumes were more than 85 percent – the act of simultaneously buying and selling of the same asset to create the deception of market movement – was occurring with a speciality token pairs.
On the background of this activity, BTI executive Marco Paez disclosed that his firm would be examining the exchange and its working to find more about wash exchanging.
Integrating BTI statement with CiperTrace’s services would enable wider compliance to push all over the Binance network. However, as its head said, these associations are only improving Binance’s present capacities, He made it clear that the exchange already has an in-house team with legal and blockchain analytics experts who are making dedicated efforts.
He said that the exchange has a compliance team which is focused on consistently increasing current standards. He said that compliance is a quest and one is always on a voyage to improve one’s compliance.