The leading cryptocurrency compliance provider, Chainalysis has joined hands with Binance , the largest cryptocurrency exchange in the world by trade volume.
The partnership is specifically aimed at helping Binance handle issues arising when cryptocurrencies meet with regulators and to boost the general perception traditional financial institutions have regarding virtual currencies.
Binance has rolled out Chainalysis KYT (Know Your Transaction) which is a compliance software providing real-time transaction monitoring for cryptocurrencies. As noted by the press release, the software employs advanced technologies e.g pattern recognition, to report “transactions involved in suspicious activity.”
According to Jonathan Levin, Co-founder, and COO, Chainalysis:
“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.”
The major benefit this software has is that it provides standard anti-money laundering regulations for both cryptocurrency firms and traditional financial institutions thus enabling crypto affiliated firms to open bank accounts.
While commenting on the partnership, Wei Zhou, CFO, Binance, said:
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. 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.”
Chainalysis provides its services to more than 150 firms which are a mix of cryptocurrency firms, government agencies, and financial institutions with the main aim being “to fight illicit cryptocurrency activity.”
The Chainalysis KYT software was deployed after the cryptocurrency investigation and compliance solutions provider secured 16 Million U.S dollars from Benchmark, a venture capital fund. With this level of AML solution, Binance will have an easy time rolling out their world-class services to new markets.
Since Chainalysis has joined hands with Binance , do you think the crypto exchange will seek to venture new markets that it has been avoiding in the past?
Let us know your thoughts in the comments section below.