The renowned and world’s biggest cryptocurrency exchange and trading platform, Binance is taking steps to ensure security on its platform. It has collaborated with Chainalysis, a compliance provider and research firm to implement Know Your Transaction (KYT) on its platform. Know Your Transaction (KYT) helps the system identify fraudulent and suspicious transactions.
The announcement was made by the compliance provider firm, Chainalysis through a press release on Wednesday, October 17. Furthermore, the collaboration is aimed ” to help address the challenges at the intersection of cryptocurrencies, regulators and traditional financial institutions“.
More about the Collaboration
Binance has been expanding rigorously. Furthermore, they have started venturing into the international overseas market. For a cryptocurrency exchange, of such a behemoth scale to work, it has to comply with the local laws. Furthermore, it has to follow the Anti Money Laundering (AML) and Know Your Customer (KYC) rules of each government.
With Chainalysis, Binance can now easily keep track in real-time of every transaction’s compliance. The compliance provider firm’s software, Chainalysis KYT, is one of its kind. Furthermore, it makes use of numerous references to open source, recognizes patterns and uses state of the art algorithms. Moreover, it lets the software categorize digital asset services, and track them to raise alerts in real-time on any suspicious activity.
Jonathan Levin, Co-founder, and COO of Chainalysis stated this. “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.”
Wei Zhou, CFO at Binance said: “By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. “Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally while adhering to regulatory mandates in the countries we serve.”