July 1, 2021, | AtoZ Markets – World’s largest cryptocurrency exchange Binance announced that it has implemented the CypherTrace Traveler technology of supervision of cryptocurrency operations into its services. It is assumed that the technology will allow the platform to comply with the travel rule requirements of the international regulators FATF and FinCEN.
Travel rule requirements oblige regulated financial service providers to disclose to each other the data of users who made transfers.
CypherTrace CEO Dave Jevans says the technology allows crypto exchanges to comply with AML requirements without compromising security or business continuity.
“We are delighted to work closely with Binance and look forward to supporting their business and commitment to global compliance,” said Jevans.
Multibank ReviewT&Cs apply, 18+eToro Review74% of retail investor accounts lose moneyCapital.com Review76% of retail CFD accounts lose money
According to the description, Traveler performs payment identification in case of cross-exchange cryptocurrency transfers. The developers claim that confidential information is transferred exclusively to institutions that comply with the "travel rule" requirements. However, it remains unknown whether this information is automatically transmitted to regulatory authorities.
Read also: FCA Launches Alert Against Binance Markets and Binance Group
However, this is not Binance's first collaboration with CipherTrace. Earlier, the exchange announced that it will start tracking activity on the Binance Smart Chain (BSC) blockchain using analytical resources CypherTrace.
The decision to start monitoring the blockchain is driven by a series of attacks on Decentralized Finance (DeFi) protocols based on the BSC. Earlier, AtoZ Markets reported that in May alone, three DeFi protocols in the BSC network at once became victims of attacks by cybercriminals.
In total, the attackers earned almost $22 million from attacks on the BSC network protocols. However, according to the cryptocurrency community, the attacks were most likely "organized and targeted."
Think we missed something? Let us know in the comment section below.