Popular cryptocurrency exchange Binance has this week revealed its partnership with San Francisco-based blockchain security firm CipherTrace in a move that will see the later bolster the former’s Anti-Money Laundering (AML) compliance program.
According to the Thursday, April 11th announcement, Ciphertrace “will raise Binance’s compliance standards in line with a worldwide progression of cryptocurrency regulations and developing frameworks.” In a bid to enhance its regulatory policies to ensure that it is expanding to more geographical locations, the importance of tapping into the robust Ciphertrace skills of helping both private and public entities be regulatory compliant in terms of online security and AML requirements.
Ciphertrace was founded back in 2015 in Silicon Valley and over the years has had the opportunity to work with, among other entities leading exchanges, banks, investigators, regulators and digital asset businesses.
All these businesses use Ciphertrace’s robust monitoring tools to “trace transaction flows and comply with regulatory anti-money laundering requirements, fostering trust in the cryptocurrency economy.”
Ciphertrace’s client list expands to auditors and financial institutional at an international level. It’s an impressive portfolio. And now the company hopes to empower Binance and its market to further ensure trust and security in the broader industry.
Samuel Lim, the Chief Compliance Officer of Binance commented explaining why it was necessary to hire an external firm to ensure that Binance’s customer due diligence process is up to snuff. He said:
“The selection of CipherTrace as our on-chain security solution will augment our expansion drive and build greater trust among our users, regulators and financial institutions… This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion.”
CEO of CipherTrace, Dave Jevans believes that Binance is already a leader in the AML compliance space and is excited to help the company take their game to the next level.
“As one of the most trusted cryptocurrency exchanges on the globe, Binance is leading the way in AML compliance programs for the industry,” he said and added “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.”