Nick Chong · 8 hours ago · 2 min read
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Binance partners with CipherTrace to enhance anti-money laundering compliance
Binance announced a partnership with CipherTrace, a blockchain security company, with the aim of enhancing the exchange’s anti-money laundering (AML) compliance program.
World’s Largest Crypto Exchange Aims to Improve Its AML Compliance
CipherTrace, a blockchain security company, is teaming up with Binance in order to help the exchange enhance its regulatory compliance. The companies will work together on improving its anti-money laundering (AML) compliance program.
According to Binance’s press release shared with CryptoSlate, the partnership with CipherTrace will raise the exchange’s standards in line with cryptocurrency regulations across the world. Samuel Lim, the chief compliance officer of Binance, said that choosing CipherTrace as its on-chain security solution will help build greater trust among its users.
“This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion,” he added.
According to Leah Li, global PR manager at Binance:
“Our partnership with CipherTrace will strengthen our expansion drive as we look to enter new markets in the most compliant manner. The goal is to foster greater trust between our users, regulators and financial institutions. This partnership also serves to show how our industry leverages new technologies and analytics to achieve regulatory adherence.”
CipherTrace Expands Its Reach
Dave Jevans, the CEO of Silicon Valley-based CipherTrace, said that the company expects that the level of transparency and trust in the overall market will rise due to its partnership with Binance. Jones said in the company’s press release:
“As one of the most trusted cryptocurrency exchanges on the globe, Binance is leading the way in AML compliance programs for the industry.”
Founded in 2015, CipherTrace, which was initially funded by the US Department of Homeland Security (DHS), Science and Technology (S&T), and DARPA, already has several high-profile partnerships in place.
Just last month, the company partnered with the Malta Financial Services Authority (MFSA), the country’s sole financial regulatory agency. CipherTrace was enlisted to help audit crypto asset services that operate within Malta’s jurisdiction and ensure all crypto transactions within the country are free of money laundering.
While it’s still too early to tell if CipherTrace’s partnership with the MFSA had resulted in a decrease in financial crime in Malta, the company’s agreement with Binance could help establish the exchange as a leader in regulatory compliance.
Fostering a trustworthy image of the exchange could bring more institutional investment into the space as well as help Binance secure better treatment from both local and global regulators.