Binance, the largest cryptocurrency exchange by trading volume announced on 11 April about its partnership with CipherTrace, a blockchain security company.
Binance commenced by informing that this embrace was to enhance the exchange’s strong anti-money laundering (AML) compliance program. CipherTrace would help raise Binance’s compliance standards aligning to worldwide trends. There would also be efforts to bring Binance in line with progressing cryptocurrency regulations and developing frameworks.
Samuel Lim, Chief Compliance Officer of Binance, cited –
“The selection of CipherTrace as our on-chain security solution will augment our expansion drive and build greater trust among our users, regulators and financial institutions. This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion.”
Binance conveyed that CipherTrace was already engaged to serve regulators, financial institutions and auditors spread globally. CipherTrace would endeavour to scale Binance and its market to provide enhanced security. The AML processes would include but not limited to tracing the source of on-chain funds and matching users to problematic wallet addresses.
Binance’s partnership with CipherTrace is well-timed and comes similar to a partnership with IdentityMind on know-your-customer (KYC) compliance. Binance also works with AML software developer for Bitcoin businesses, Chainalysis, and the Blockchain Transparency Institute (BTI). Binance has active engagements with Refinitiv which was formerly the financial risk division of Thomson Reuters.
Dave Jevans, CEO of CipherTrace added that Binance was reputed as one of the most trusted cryptocurrency exchanges. Dave also noted that Binance was leading the way in AML compliance programs for the industry. He expressed that they were looking forward to helping the crypto economy grow by raising the standards of transparency and trust in the overall market.
Recently, Binance Labs, the deal-making wing of Binance announced about its grant of 15,000 U.S. dollars to each of its first three Fellowship projects. Binance Labs expressed that the Fellowship was an initiative to support and fund open-source development projects. Such products add infrastructure value to the global blockchain ecosystem.
Likewise, Binance had conveyed through a tweet about its upcoming offer to launch a fiat-to-cryptocurrency exchange in Singapore. Binance conveyed that it would start trading operations in the new exchange later. However, Binance did not share any insider information on its upcoming subsidiary.
Binance concluded by sharing key industry engagements of CipherTrace. CipherTrace develops AML, cryptocurrency forensics, blockchain threat intelligence and regulatory monitoring solutions. Reputed banks, exchanges, regulators, investigators and digital asset businesses rely on CipherTrace to trace transaction flows while also complying with regulations.