Binance, one of the world’s largest cryptocurrency exchanges, agreed to take part in the initiative to eliminate money laundering on its platform. This week, Binance began a collaboration with leading Chainalysis company, which analyze blockchain systems. The company’s system identifies suspicious transactions and addresses, thereby preventing criminal activity.
Cryptocurrency companies and exchanges in all countries face the same major problem: gaining the trust of regulators, financial institutions and users. There is a high probability that many companies will follow the lead of Binance to develop AML compliance programs. This will help meet regulatory requirements and create trusting relationships with large financial institutions.
Wei Zhao, CFO Binanse: Working with Chainalysis, we can continue to develop a general compliance program that will allow us to enter the next stage of development. Our vision is to provide the infrastructure for the digital ecosystem and increase the freedom of money around the world, while adhering to regulations in the countries in which we operate.
Throughout the history of cryptocurrencies, despite the presence of a variety of measures aimed at preventing fraud, the main argument of many investors and politicians was the participation of digital currencies in fraudulent or criminal activities. At this stage of market development, changes are needed that could induce governments such as the United States, Japan and South Korea to legalize and recognize the cryptocurrency market.