The world’s largest cryptocurrency exchange Binance by trading volume is partnering with Medici Ventures portfolio firm IdentityMind to boost stronger know-your-customer (KYC) and anti-money laundering (AML) regulations to ensure data security and compliance across its international operations.
IdentityMind announced on 26 March its partnership with Binance to “improve existing data protection and compliance measures” for the exchange’s global operations.
IdentityMind CEO and President Garrett Gafke said,
IdentityMind’s platform provides digital currency exchanges a real time platform to comply with KYC and anti-money laundering [AML] regulations worldwide. According to the announcement the firm’s risk and compliance platform is the only real-time onboarding, transaction monitoring, and case management solution built for cryptocurrency exchanges.
Samuel Lim, Chief Compliance Officer of Binance said that the partnership will enhance security systems while preserving the regulations and approval in the operating countries. The firm’s main target is to foster more trust among the financial institutions globally.
The partnership is a revolutionary update in Binance user account system. Last year Bloomberg reported, Binance’s KYC processes are “the industry’s least rigorous.” Users just need an email address to open trading user accounts with the exchange, the report said. The level of anonymity will encourage anti-money laundering and market manipulation which is difficult to track.
Binance has been trying to make changes in its compliance and KYC updates. In October 2018, the exchange partnered with Chainalysis, cryptocurrency compliance and investigation software provider to observe cryptocurrency transactions in real-time to restrict illegal activities and anti-money laundering. In the following month the exchange partnered with Refinitiv, firm formerly associated with the financial and risk business division of Thomson Reuters, to automate KYC solution.
CEO of Texas West Capital and ICO Advisor Christopher Inks tweeted about this partnership,