The world’s largest cryptocurrency exchange by volume, Binance, has taken another step towards detecting suspicious transactions.
In a Wednesday press release, crypto compliance, and research firm Chainalysis confirmed that it has gone into a partnership with Binance. The purpose of the new deal is for Chainalysis to help Binance tackle crypto money laundering.
The latest union is really timely since Binance is currently expanding to various international markets. Within the past week, the exchange made its debut in Uganda and will be required to meet up with know your customer (KYC) and anti-money laundering (AML) rules in each jurisdiction.
Chainalysis will hep Binance achieve this by introducing a solution known as Know-Your-Transaction (KYT). This will make use of real-time monitoring to track the provenance of each transaction made on the Binance exchange.
Also, the new solution is expected to bridge the gap between cryptocurrencies, regulators and traditional financial institution by making trading a lot safer.
Jonathan Levin, co-founder, and COO of Chainalysis shared his thoughts in the press release.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”
Meeting Regulatory Mandates Easier For Binance With Chainalysis Tool
For the next phase of Binance growth, rolling out the new Know-Your-Transaction (KYT) software by Chainalysis will be crucial. This is primarily because different regions in the world still hold different opinions about how cryptocurrencies should be used or regulated.
Wei Zhou, CFO at Binance mentioned that this is part of the vision held at Binance,
“Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally while adhering to regulatory mandates in the countries we serve.”
The crypto exchange currently has more than 9 million users and expect to get new customers in new regions such as Malta and Africa where they are setting up exchanges.