Malta-based cryptocurrency exchange Binance announced that they have partnered with blockchain security firm CipherTrace to bolster their anti-money laundering (AML) measures. This according to a Binance Blog post on April 11, 2019.
Recent Developments Call for Extra Security Measures
The use of cryptocurrencies to orchestrate money laundering schemes has been a major cause of concern for regulatory bodies the world over.
As reported by BTCManager on April 11, 2019, fresh evidence suggests that the late CEO of the troubled Canadian cryptocurrency exchange QuadrigaCX might have been involved in a complex money laundering scheme.
Seeing how such controversies can get bad repo to the entire cryptocurrency industry, digital assets exchange platforms the world over are leaving nothing to chance when it comes to security.
Binance Continues to Tighten Security
Binance, being one of the largest exchange platforms in the world by reported trading volume, has now partnered with security firm CipherTrace to strengthen their AML measures. According to the blog post, CipherTrace will help Binance raise their compliance standards in line with a worldwide progression of digital currencies regulations and developing ecosystems.
Samuel Lim, CCO, Binance, said that the partnership with CipherTrace will help the exchange develop more trustful business synergy with users, regulators, and financial institutions. Lim added that the newly christened partnership will help Binance in expanding its business footprint into new markets “in the most compliant fashion.”
Founded in 2015, CipherTrace is not completely alien to the cryptocurrency industry.
Today, some of the leading exchanges and digital asset businesses use CipherTrace’s security solutions to keep a track of transaction flows while also complying with the stringent AML standards of the industry. Notably, the company secured $15 million in its latest fundraise.
Commenting on the partnership with Binance, Dave Jevans, CEO, CipherTrace, said:
“As one of the most trusted cryptocurrency exchanges on the globe, Binance is leading the way in AML compliance programs for the industry,”
“With regulators in the world’s most progressive jurisdictions that encourage innovation also using CipherTrace to assess and monitor risks of licensed cryptocurrency businesses, we are looking forward to helping the crypto economy grow by raising the level of transparency and trust in the overall market. We expect many others to follow Binance’s lead and are excited to help pave the path.”
In related news, Binance on March 27, 2019, partnered with risk management and data security firm IdentityMind to further boost their AML and KYC measures.