Chainalysis, a cryptocurrency compliance and investigation solutions provider, has completed a global roll-out of its compliance solution with Binance, the world’s largest cryptocurrency exchange by trade volume, to help address the challenges at the intersection of cryptocurrencies, regulators and traditional financial institutions.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,” commented Chainalysis Co-Founder and COO Jonathan Levin. “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.”
Chainalysis’ compliance software, Chainalysis KYT (“Know Your Transaction”), offers real-time transaction monitoring solution for cryptocurrencies which 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.
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth,” indicated Binance CFO Wei Zhou. “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.”
This solution aims to enable 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.
Binance, a blockchain ecosystem comprised of Exchange, Labs, Launchpad, Info, Academy, Trust Wallet, and Blockchain Charity Foundation (BCF), claims to be one of the fastest and most popular cryptocurrency exchange platforms in the world, capable of processing over 1.4 million orders per second. Earlier this week Binance indicated that the platform had begun accepting registrations at its Binance Uganda exchange.
Chainalysis, which in April secured $16M in Series A funding led by Benchmark to deploy Chainalysis KYT and expand its coverage of cryptocurrencies, said that it serves over 150 global cryptocurrency businesses, financial institutions and government agencies.