Binance Exchange will increase its Anti-Money Laundering efficiency following a recent integration with CipherTrace’s platform. Clients will now be able to trace BNB coins and transactions within the Binance decentralized exchange for best practices.
CipherTrace which operates within the IT security arena is based in the U.S and currently services over 700 crypto coins. The firm now has a new institutional market from the alliance with Binance; a partnership that began back in April and has clearly been on course.
According to the Chief Compliance Officer of Binance, Samuel Lim, this move places them at a better position in terms of doing business;
“This partnership with CipherTrace would ultimately encourage greater community involvement, developer participation and public interest in Binance Chain and pave the way for larger mainstream adoption,”
Binance will use the CipherTrace tech to identify problematic digital addresses and track the on-chain transactions. In addition, 3rd parties such as developers and regulators can now access the necessary data from Binance’s clients.
The digital exchange has however made it clear through the COO that it will uphold its high standards in protecting users’ data;
“Users can rest assured that Binance will uphold its usual high standards of user security and data protection.”
Binance and Financial Action Task Force (FATF) Compliance
Earlier in June, the regulator requested authorities from various countries to ensure digital asset exchanges keep transaction records. This means that a platform like Binance ought to have senders’ and receivers’ information upon request by an oversight authority.
The CipherTrace partnership is, therefore, a plus for Binance according to Lim. He added that the exchange’s clients should expect more support going forward as they build a fully compliant ecosystem globally. However, the assurances by Binance have not been satisfactory to all stakeholders on the issue of allowing 3rd parties to access clients’ data.