Blockchain Surveillance Firm Partners With Cryptocurrency Exchange Binance – Bitcoin News


Blockchain Surveillance Firm Partners With Cryptocurrency Exchange Binance

On Oct. 17, the world’s largest cryptocurrency exchange by volume, Binance, announced a partnership with blockchain surveillance company Chainalysis. According to the exchange, Chainalysis has implemented a compliance solution that meets regulatory guidelines worldwide.

Also read: Bizarro World: Federated Sidechain Technology Promoted Over Nakamoto Consensus

Binance Is Using Chainalysis for Compliance

According to a press release published on Oct. 17, Binance and Chainalysis have joined forces to create a compliance solution for trading operations. The collaboration will further ensure that Binance exchanges comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) laws. The co-founder of Chainalysis, Jonathan Levin, explained during the announcement that all cryptocurrency businesses face the challenge of “earning the trust of regulators, financial institutions and users.”

“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,” Levin detailed. “Chainalysis’ compliance software, Chainalysis KYT (Know Your Transaction), is the only real-time transaction monitoring solution for cryptocurrencies.”

Blockchain Surveillance Firm Partners With Cryptocurrency Exchange Binance

To Some, Regulatory Compliance and Permissionless Innovation Mix Like Oil and Water

Levin says that the Chainalysis software uses methods like proprietary algorithms and pattern recognition that can raise alerts when suspicious transactions happen. Binance will be able to leverage the KYT software and other services Chainalysis offers. Wei Zhou, CFO at Binance, says the collaboration helps the exchange build a “foundational compliance program.”

“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,” Zhou stated.

Blockchain Surveillance Firm Partners With Cryptocurrency Exchange Binance

Overall, both companies believe the compliance solution will enhance the cryptocurrency environment. Moreover, Chainalysis thinks exchanges working with them will make it easier for cryptocurrency firms to open bank accounts and establish relationships with legacy financial providers. However, on forums and social media, many digital asset proponents voiced their displeasure at the announcement. Most cryptocurrency users wholeheartedly believe in privacy, and are concerned by a growing trend for blockchain surveillance.

What do you think about Binance teaming up with the blockchain surveillance firm Chainalysis? Let us know what you think about this subject in the comments section below.

Images via Shutterstock, Binance and Chainalysis

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Tags in this story
AML, BCH, Binance, Bitcoin, bitcoin cash, Blockchain Surveillance, BTC, Chainalysis, Cryptocurrency, guidelines, Jonathan Levin, KYC, Law Enforcement, Laws, N-Featured, Regulations, Wei Zhou


Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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