Leading cryptocurrency exchange Binance has partnered with regulatory technology company Coinfirm according to an announcement by the exchange on Thursday. The partnership is aimed at bolstering Binance’s AML compliance with regards to the latest Financial Action Task Force (FATF) guidelines released in June this year. Binance states in the announcement that it will:
Integrate Coinfirm’s blockchain-agnostic AML Platform to its cryptocurrency exchange servicing users in over 180 countries and regions for ensuring secure trading for its customers and compliance with the FATF’s guidelines to cryptocurrency exchanges around the world.
This is not the first partnership Binance has announced with a regulatory service provider. It has previously partnered with Silicon Valley-based cryptocurrency intelligence solutions company CipherTrace, Refinitiv, Chainalysis, and IdentityMind all with the aim of bolstering its AML/KYC procedures. All these companies have been contracted within the previous six or so months which seems to show that Binance is or has not been fully satisfied with the solutions offered by a single firm or it seems to find better solutions providers with time.
The FATF’s new guidelines outline that all financial-related businesses should monitor the source of cryptocurrency funds as well as the destination. This entails knowing the senders and recipients as well as conducting proper due diligence similar to using a bank to send and receive funds. In addition, the FATF requires businesses to develop sound risk-based analysis programs that will ensure that their platforms are not used to launder money.
Coinfirm’s real-time risk score analysis, alerts, and investigations system, built on blockchain agnostic platform will help Binance thwart money laundering attempts and allow the exchange to take quickly informed decisions on transactions to better protect the crypto economy as a whole.
The exchange said of Coinfirm’s AML solution. Coinfirm’s cofounder and CEO Pawel Kuskowski said in a statement that:
We’re excited to be working with an industry leader like Binance to boost its AML and risk analysis capabilities with our proprietary technology and widest blockchain coverage.
Similar sentiments were expressed by Samuel Lim, Binance’s chief compliance officer. He said that:
We trust that Coinfirm and its leading solutions will help us and the industry evolve in a fast-changing and developing market while allowing for comprehensive and institutional growth in a compliant and safe manner.