Binance and Chainalysis Team Up to Consolidate AML Standards


October- 18, 2018 | AtoZMarkets Binance has recently announced partnering with Chainalysis to consolidate the exchange protection standards against money laundering.

Chainalysis solutions which are designed for detecting high risk transactions, said in a press release held for partnering with Binance:

“Chainalysis’ compliance software, Chainalysis KYT (“Know Your Transaction”), is the only real-time transaction monitoring solution for cryptocurrencies. The software uses pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity.”

As per the experts, since cryptocurrency deposits and withdrawals to exchanges are recorded on specific cryptocurrency’s ledger, crypto deposits and withdrawals, Chainalysis’s software analyses them and generates proper warnings if needed.

In his turn, Chainalysis COO John Levin said: “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.”

Some Official Jurisdictions Keep an Eye on Cryptocurrency

As trading on an exchange should meet compliance standards, centralized exchanges are handled off-chain to boost performance.

With the cryptocurrency space not fully regulated yet in many jurisdictions of the world, cryptocurrency exchanges have been always criticized of allowing practices such as wash trading and spoofing.

In a similar context, Bloomberg reported in late May that the U.S. Justice Department collaborated with the U.S. Commodity Futures Trading Commission in a criminal investigation for determining whether these market manipulation techniques are being used on cryptocurrency exchanges.

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