Binance partners with Chainalysis to tackle money laundering
Chainalysis, a cryptocurrency compliance and investigation company, has teamed up with the world’s largest cryptocurrency exchange Binance to roll out its compliance software worldwide.
Binance is working with crypto software provider Chainalysis to implement a new global compliance solutionChainalysis’ compliance software, Chainalysis KYT (“Know Your Transaction”), is the only real-time transaction monitoring solution for cryptocurrencies. The software uses pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity.
Jonathan Levin, Co-Founder and COO of Chainalysis, said: “Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”
This solution enables cryptocurrency businesses and financial institutions to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, while simultaneously making it easier for companies supporting cryptocurrencies to open bank accounts.
Wei Zhou, CFO at Binance, added: “By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally while adhering to regulatory mandates in the countries we serve.”
In April, Chainalysis secured $16m in Series A funding led by Benchmark to deploy Chainalysis KYT and expand its coverage of cryptocurrencies. It serves over 150 of the world’s leading cryptocurrency businesses, financial institutions and government agencies.