In an attempt to improve their AML systems and to legitimize the crypto industry, the leading industry giant, Binance crypto exchange has teamed up with Chainalysis. The latter is a blockchain security firm that helps in dealing with suspicious transactions and addresses. Binance took this decision of seeking help from the blockchain security firm to eradicate any kind of probable money laundering activities from its platform.
Ever since virtual currencies came into existence, there has been a commonly held perception that there are tools available that help in facilitating illegal transactions on any platform. COO and co-founder of Chainalysis, Jonathan Levin, highlighted the fact that all institutions in the crypto domain find it challenging to establish trust with users, regulators and financiers.
Jonathan further added in his statement that this move of crypto exchange Binance will set a precedent with other competitors, who will hopefully do the same in order to earn the trust of financial institutions. A lot of notable banking institutions have come under the scanner this year for aiding in money laundering. A classic example is Danske Bank, which laundered a whopping $243 billion for criminals. Likewise, the Nordea Bank has been accused of accepting money laundered from smaller banks in the Baltic area.
With the growing popularity of virtual currencies amongst institutional investors, there is an even greater need to strengthen the AML systems in crypto exchanges. This would help in boosting the reputation of virtual currencies as an asset class and also assist in making the crypto market a regulated industry, as stated in the Bitcoin Exchange Guide report.
The Binance crypto exchange has teamed up with Chainalysis, as the company is known for building trust in blockchains. The company as mentioned on the official website helps in preventing, detecting and investigating money laundering, fraud and compliance violations. In the case of exchanges, it helps in automating AML compliance processes, co-creating global cryptocurrency compliance standards and speeding up customer reviews with actionable risk scores, data exports and customer dashboards for suspicious activity reports.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]