Binance Teams Up With Coinfirm To Comply With FATF AML Requirements
The new partnership will see Binance integrate Coinfirm’s agnostic AML platform to improve the crypto exchange’s compliance with the new AML requirements recently provided by the Financial Action Task Force (FATF), the global financial supervision watchdog that enjoys backing from major economies in the world.
In a press statement issued by Binance on Thursday Oct.3, the new measures also meant to enhance the crypto economy in the world. As per the FATF new measures, crypto operators are supposed to come up with a system that will help in identification of fund senders as well as recipients. Crypto exchanges are also required to carry out quality due diligence to make sure that they are not involved in illicit activities as well as come up with risk-based policies, among other requirements.
To ensure compliance, Binance stated that it will utilize Coinfirm’s products and platforms to assess as well as analyze AML risks for more than 1,200 digital assets, tokens as well as various blockchain services provided within its trading platform.
Binance is not the only crypto operator to engage the services and products of Coinfirm. Recently, crypto market aggregator CoinGecko has also teamed up with Coinfirm so as to enhance its exchange Trust Score algorithm and also offer its clients with means to report scams as well as hacks.
Additionally, tech startup Ripple, largely known for XRP, also joined the fray after it signed an agreement with Coinfirm. As per the agreement, Coinfirm will analyze whether XRP is compliant with AML requirements.
Cointelegraph reports that Coinbase’s chief compliance officer, Jeff Horowitz, recently said it was important for FATF to enhance its supervision of the crypto exchanges but urged for caution on the way the implementation of the requirements is done.
Horowitz warned that application of similar regulations as those of the banking industry can lead to having an inspection of individual to individual transactions and this may lead to minimal transparency for law enforcement.