News Binance enlists CipherTrace to boost compliance, expand into new...

Binance enlists CipherTrace to boost compliance, expand into new markets

-

- Advertisment -Binance enlists CipherTrace to boost compliance, expand into new markets

From his throne atop Mt. Crypto, Changpeng Zhao surveys his empire, and whispers to himself, “It isn’t enough.”

To hear CoinDesk tell it, Binance, the world’s leading cryptocurrency exchange, isn’t just at the top of its game but the  game—its brilliance  unrivaled by any company in the history of cryptokind.

A bit much? It’s not an unpopular take. Hell, some heavyweight crypto pundits say Binance is so damn big and rich, it only has to play nice with global regulators if it wants .

And, well, it seems like Binance wants.

But on its own terms, of course.

On Thursday, the company announced it has hired CipherTrace— the Silicon Valley-based cryptocurrency intelligence solutions company known for its anti-money laundering and blockchain forensics operations.

“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,” said Samuel Lim, Binance chief compliance officer. “This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion.”

CipherTrace does not  mess around. The company works with law-enforcement agencies around the world to track down bad actors and cut down on any funny business using a “powerful API,” “machine learning algorithms,” “advanced attribution aggregation,” and all kinds of other buzzwordy, but still very impressive-sounding, tactics.

It’s as legit as they come.

But that isn’t to say that other KYC/AML compliance companies such as Refinitiv, Chainalysis, or IdentityMind are slouches either—all of which, incidentally, are companies that Binance has announced forming some sort of partnership with in the last six months. (This is where we wish we could resist making the joke that Binance changes its KYC provider more often than it changes its regulatory jurisdiction.)

To be fair, though, Lim explained to Decrypt last month (when it announced its partnership with IdentityMind) that Binance “routinely partners with KYC/AML providers globally” to essentially pick their brains and develop best practices and fine tune “user privacy and asset integrity.” So there’s that.

CipherTrace, coincidentally, just last month announced a partnership of its own the government of Malta—which is where Binance is based. So there’s also that .

“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,” said CipherTrace CEO Dave Jeans.

“Progressive jurisdictions” is a very suave  way of saying “places in the world where the rules aren’t as tough on crypto dealin’.” Then again, it’s also a way of saying “crypto-friendly nations where the regulations aren’t as draconian,” depending on which side of the regulatory fence you’re on.

Either way, we’re talking places like Malta, Uganda, Singapore—maybe  even Argentina.

Binance built its business as a crypto-to-crypto exchange, avoiding many of the regulatory headaches that come with dealing in that filthy fiat. But it makes no bones about its plans for the future: The fiat-to-crypto on-ramps are coming.

It set up shop in Malta. Its first fiat-to-crypto exchange opened in Uganda, the next one is planned for Singaporemaybe  even Argentina.

So what’s all this enhanced compliance really all about?

CZ keeps it real.

A robust, self-regulated exchange that places user experience, security, and privacy above all else—and one that will do just enough KYC/AML compliance to satisfy the regulators in the markets that it’s targeting, that’s  the business model.

Despite being on the receiving end of giants heaps of praise as of late, the one thing that Binance has been routinely pilloried over is its “relatively lax” KYC and AML procedures. It doesn’t require anything more than an email address from its users, so long as they stay under the 2 BTC (roughly $10,600) withdrawal limit per day.

Adding another compliance partner isn’t going to change any of that. Why should it?

But with more fiat-to-crypto on-ramps on the menu, a little more  regulatory compliance could be just enough of that secret sauce to get more “progressive jurisdictions” to come to the table.

Brilliant.



Source.

Binance enlists CipherTrace to boost compliance, expand into new markets
Bitnewsbot.comhttps://bitnewsbot.com
BitNewsBot.com aggregates the latest news around bitcoin, blockchain, cryptocoin, ICO's and FinTech, from all around the internet and publishes them in a single place.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Reasons To Prefer Slot Games Even When You Are Losing

Oh what a wonderful world the slot machine industry is, full of technological evolution and the all-important...

Advice for Responsible Slot Gambling From an ex Addict

Thanks to a combination of improved gameplay and their availability on remote devices, the slots you can...

When You Should Stop Playing Bingo

Since its inception in the late 1800s, Bingo has enjoyed a remarkable rise to popularity, being a...

Why Bitcoin Will Succeed?

If Bitcoin will succeed or not is an interesting question. For the time being, Bitcoin holds a...
- Advertisement -Binance enlists CipherTrace to boost compliance, expand into new marketsBinance enlists CipherTrace to boost compliance, expand into new markets

Elon Musk Tweets That “Bitcoin” Is Not His Safe Word

By now, you probably know that Elon Musk appears to have knocked up his girlfriend, Grimes. And just when you...

Bitcoin Can Gain 100% In 2020 – Halving Not Priced In, Says Fundstrat

Authored by William Suberg via CoinTelegraph.com, Bitcoin can deliver 100% returns to investors in 2020 and may rise significantly in...

Must read

Reasons To Prefer Slot Games Even When You Are Losing

Oh what a wonderful world the slot...

Advice for Responsible Slot Gambling From an ex Addict

Thanks to a combination of improved gameplay...
- Advertisement -Binance enlists CipherTrace to boost compliance, expand into new marketsBinance enlists CipherTrace to boost compliance, expand into new markets

You might also likeRELATED
Recommended to you