In an encouraging move, Binance, a huge cryptocurrency exchange has decided to put an end on money laundering on its platform.
The most negative aspect of cryptocurrency is the criminal activities accomplished with the help of it. It is due to the lack of privacy and safety measures. Although, due to Know Your Customer (KYC) and Anti-Money Laundering (AML) systems it is not easy for criminals to process illegal transactions.
Notably, Binance has begun to collaborate with Chainalysis, a highly performing blockchain analysis company that examines suspicious transactions and addresses, to enhance its AML system, which will validate the cryptocurrency sector.
Jonathan Levin, co-founder and COO of Chainalysis stated, “Cryptocurrency businesses of all sizes face the same core challenge: 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.”
Additionally, in 2018, some significant banks were cracked down for money laundering, like Danske Bank, and Nordea Bank.
The market of cryptocurrencies is expanding like never before, in this circumstances consolidation of AML systems are much required. It will strengthen cryptocurrencies as a recognized asset class and the digital asset market and also a well-regulated sector.
Amid that, Wei Zhao, the CFO at Binance believes, going in line with the firm’s vision of increasing the freedom of money globally, it will continue to adhere to regulatory mandates in the countries it functions in.
He added, “By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. 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.”
Hopefully, the significant move of Binance to legitimate crypto market will improve the process and facilitate the investors.