By Binance, one of the worlds largest cryptocurrency exchanges continues on its quest to become as compliant as ever.
The crypto exchange recently joined forces with Elliptic, a blockchain analytics startup in an effort to bolster its compliance and security. The news was announced on Thursday by Elliptic.
This new partnership, which marks the third compliancy-related team-up in the past two months, will aid Binance in combatting money laundering as the firm expands into new territories, according to the exchange’s chief compliance officer, Samuel Lin.
The software developed by Elliptic aids in identifying potential illicit transactions such as money laundering and terror-financing and is allegedly responsible for monitoring risks around transactions which have been worth “several trillion dollars.”
Just last month saw Binance team up CipherTrace, another blockchain analytics firm, in order to improve its anti-money laundering processes, for example, tracing sources of on-chain funds and the matching of user identities to suspicious wallet addresses.
Furthermore, Binance also does work with IdentityMind on know-your-customer (KYC) compliance following a deal which took place in March, as well as Chainlysis, Refinitiv and the Blockchain Transparency Institute.
However, not everyone seems convinced, as Binance was recently identified as having a “high” regulatory risk based on “exposure to anonymous activity” by Coinfirm, a reg-tech company. In addition to this, Bloomberg last year called out the exchange stating that the firm’s KYC processes were “the industry’s least rigorous.”
Since this criticism’s the exchange has wasted no time or funds to address these perceived shortfalls in its procedures.
Lim stated:
“We are very serious about improving our compliance standards. We will continue to build our [compliance] team, continue to re-invest in the compliance space. Compliance is always a quest, you are always on a journey to improve your compliance.”
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