Binance to Implement ‘Know Your Transaction’ Tool by Chainalysis

By Chetna Phour

Binance, the largest cryptocurrency exchange in the world by trading volume, has partnered with crypto compliance and investigation software provider Chainalysis to use its crypto compliance solutions. On 17th October the company has announced that it is going to use technology as a new global compliance solution.

According to the Chief Financial Officer (CFO) of Binance, Wei Zhou

“The ultimate goal of our partnership with Chainalysis is to create an environment in blockchain where everyone feels safe.”

He added:

“We believe the fight against money laundering to be collaborative and pro-active.”

Chainalysis is going to provide the access of its “Know Your Transaction” compliance software to Binance. The software will enable the crypto exchange to monitor the cryptocurrency transactions in real time. The software will primarily look for potentially illicit or criminal activities.

Wei believes that the step taken by Binance will inspire the crypto industry to take anti-money laundering and anti-terrorism financing measures seriously. Binance is already following know-your-customer (KYC) and anti-money laundering (AML) measures. The crypto exchange has even hired compliance professionals. According to Wei,

“Criminals are always looking to loopholes in the system, so we are continuously on the lookout for new technologies and methods to combat money laundering and malicious actors.”

Binance was founded in China in 2017. The company moved to Japan in advance of the Chinese government ban on crypto trading. As of January 2018, Binance was the largest crypto exchange in the world with $1.3 billion market capitalization. In March 2018, Binance showed its intentions to open an office in Malta after stricter regulations in Japan and China. The ultimate goal of Binance is to provide enough safety to its users who are interested in making compliant transactions.

Chainalysis is a platform which prevents, detect, and investigates crypto money laundering, fraud, and compliance violations. It detects suspicious activity during a transaction and generates an alert. The system of Chainalysis works by using a combination of proprietary algorithms, pattern recognition, and different open source resources o process crypto services.

According to the co-founder and Chief Operating Officer (COO) of Chainalysis, Jonathan Levin, “Cryptocurrency market participants must develop greater trust in the data and technology underlying our ecosystem.” Jonathan believes that, “By working with industry leaders like Binance, we’re able to mould the foundation for credible and robust markets in all jurisdictions.”