Binance Collaborates with Coinfirm to Improve the AML Compliances

The major cryptocurrency exchange, Binance, has been hitting the headlines, since the announcement of its partnership with Coinfirm, a startup crypto analytics platform on October 3. This new integration is a step towards improving the anti-money laundering compliances associated with cryptocurrency transactions. Moreover, Binance considers this alliance as a quest to become one of the most scalable exchanges to allow a few nefarious users to log into their website. This is because the number of users and assets exemplifies the challenges for a popular cryptocurrency exchange like Binance.

Binance has experienced a lot of ups and downs and criticisms due to its lax regularity listing procedures. The reg-tech firm Coinfirm recently classified Binance to be one of the most high-risk exchanges in terms of regulatory compliances. In March 2018, the KYC procedures of Binance were also criticized to be the least rigorous. Since then, Binance has been planning to set its AML or the anti-laundering compliances correct, and this collaboration with Coinfirm is a step towards this improvement.

This integration with Coinfirm will purportedly streamline Binance’s AML compliances issued by the FATF or the Financial Action Task Force. According to the new issued by FATF, the cryptocurrency operators will now have to establish the identity of crypto assets senders and recipients and ensure that they are not engaged in any kind of illicit activity. They will also be required to develop risk-based programs, to bring out any risks associated with the cryptocurrency transactions and take appropriate measures at the earliest.

Accordingly, Binance will be deploying Coinfirm’s products to analyze AML risks in 1200, plus digital currencies and tokens. However, Binance has partnered with other blockchain analytics firms like Elliptic and CipherTracein in the past for adding and improving the AML arsenal.