Binance cooperation with Chainalysis is bigger deal than you think and this is why

Binance, the world’s largest Bitcoin exchange by tradingvvolume, is taking action against money laundering with crypto currencies. By integrating the Chainalysis KYT software, the exchange is expanding its compliance with traditional financial market regulations.

As Chainalysis announced yesterday, Thursday, 18 October, the company is now working with the Binance crypto exchange. Binance uses the Chainalysis software KYT (“Know Your Transaction”) to establish compliance in the area of money laundering. According to the company, KYT is software specially developed for the identification of money laundering activities. The functionality of Chainalysis on medium is described as follows:

Chainalysis KYT provides real-time feedback on the underlying purpose of transactions and feeds that feedback into exchanges transaction processing engines. Compliance personnel use our dashboard to generate alerts on risky customers and export suspicious activity reports. We have opened KYT to a small group of early customers, and they have already seen a 20x improvement in the speed of account reviews. Chainalysis KYT is based on a set of proprietary algorithms that use a number of open source resources to identify and report suspicious patterns in the transaction behavior of monitored wallets.

Since this year, the tool has included BCH monitoring in addition to BTC analysis.

Earn passive income with Quadency TRADING BOT. Connect Binance account and use Quadency bot for 6 MONTHS COMPLETELY FREE. Hurry up, this deal is not around for long!

Binance drives professionalization forward

We have already reported in detail on Binance’s expansion efforts in Africa. The cooperation with Chainalysis must therefore be seen in the light of the exchange’s growth intentions. These are accompanied by strict regulations, which the exchange must comply with. Binance CFO Wei Zhou adds:

By working with Chainalysis, we can build a compliance program that will enable the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and promote the freedom of money worldwide, while complying with the legal requirements in the countries where we operate.

It is precisely these legal requirements that may have led Binance to partner with Chainalysis. The tool helps the Exchanges to comply with the legal know-your-customer and anti-money laundering regulations. This type of compliance could ultimately enable exchanges to obtain their longed-for bank licenses. And that is exactly what the crypto universe needs – compliance with regulations, serious infrastructure on the edges of the cryptocurrency ecosystem – exchanges, wallets and other gatekeepers and on-ramps to the system need to be efficient and user-friendly before the mainstream adoption kicks in.

 

Crypto arbitration still works like a charm, if you do it right! Check out Bitsgap, leading crypto arbitrage bot to learn the best way of doing it.
brave browser
Brave Browser: Protect your privacy, save money by saving your bandwidth and buy & trade crypto directly from the Brave Browser via Binance.

 

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Phil Traugott is a staff writer at CaptainAltcoin. As a trained marketing specialist for copywriting and creative campaigns, he has been advising top companies on the following topics: online marketing, SEO and software branding for more than 10 years. The topic of crypto currencies is becoming increasingly important for companies and investors and he found it very alluring and fitting for his skillset which prompted him to pivot his career towards blockchain and cryptocurrencies.

We will be happy to hear your thoughts

      Leave a reply