Binance announces partnership with CipherTrace to improve AML processes

12 Apr, 2019 | Updated: 12 Apr, 2019
by Fifi Arisandi
Binance announces partnership with CipherTrace to improve AML processes

Binance addresses their compliance standard issues by working with several blockchain security firms. 

One of the major crypto exchanges, Binance just announced their partnership with blockchain analytics firm, CipherTrace.

The cooperation is expected to bring Binance’s compliance standards to the next level as CipherTrace’s technology will bring major improvements to the anti-money laundering (AML) processes, such as tracing the source of on-chain funds and matching user IDs to problematic wallet addresses.

“We are very serious about improving our compliance standards,” said Samuel Lim, Binance’s head of compliance.

Lim added, “We will continue to build our [compliance] team, continue to re-invest in the compliance space.”

The steps may be taken after an extremely rare case was found, when analytics firm, Whitestream’s identified a Binance account that is used to receive Bitcoin from supporters of a terrorist organization, Hamas.

Such thing might happen due to Binance doesn’t have strict KYC requirements, as said by Coinfirm.

Thus, the exchange decided to work with several companies, such as Chainalysis, Refinitiv, and the Blockchain Transparency Institute (BTI), aside from CipherTrace to address the matter.

“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,” said Lim.

Having said that, Lim clarified that the partnerships are “merely enhancing” Binance’s existing capabilities, as they claimed to already have “an in-house team with dozens of legal and blockchain analytics experts devoted to tasks like platform moderation, AML and KYC compliance”.

“Compliance is always a quest, you are always on a journey to improve your compliance,” Lim closed his statement as quoted by Coindesk.

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