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Binance Collaborates With CipherTrace in Recent Compliance Stress


One of the largest cryptocurrency exchanges by trading volume Binance is undertaking on a multi-pronged force to improve compliance strategies across its platform.

Considering the compliance push in mind, Malta-based cryptocurrency exchange Binance announces a new collaboration with the blockchain analytics firm CipherTrace to boost anti-money laundering [AML] methods like tracing the source of on-chain funds and matching customer IDs to complicated wallet addresses with problems.

Head of compliance at Binance told sources, “We are very serious about improving our compliance standards,” Samuel Lim, head of compliance at Binance, ee will continue to build our [compliance] team, continue to re-invest in the compliance space.”

The new partnership comes closely after Binance partnership with IdentityMind on know-your-customer [KYC] compliance. CipherTrace is supported by venture firms such as Mike Novogratz’s Galaxy Digital.

“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,” Samuel further added.

For instance, Whitestream identified a Binance account, the analytics company that purportedly received bitcoin from supporters of the military-political group Hamas, a terrorist organization. Experts claim that such cases are rare.

Earlier also some allegations rose because of the Binance’s reputational risk. The regtech startup Coinfirm recognized Binance as an exchange that doesn’t enforce limitation based on KYC requirements.

Also, BTI report announced this week found that although Binance trading volumes were more than 85 percent authorized some wash trading was happening with niche token pairs. Hence BTI development director Marco Paez revealed to sources that his research wing along with Binance is working to restrict wash trading.

Integrating those BTI insights with CiperTrace’s services could enhance the broader compliance push across the Binance ecosystem. Lim highlighted that the new partnership are just enhancing Binance’s capabilities that are existing already. He also noted that the exchange already has an in-house team with “dozens” of legal advisors and blockchain experts dedicated to tasks like platform moderation, AML and KYC compliance. He even explained that the Binance’s compliance team is devoted to continually raising the bar as the regulatory landscape along with evolving user behaviors.