Binance cryptocurrency exchange implemented a compliance solution developed by the blockchain startup Chainalysis. A tool called Chainalysis KYT (know your transaction) will be used to monitor real-time transactions and identify criminal-related transfers, as well as combat money laundering.
Wei Zhou, the CFO at Binance, said that he expects this news to inspire other industry participants to combat the illegal use of cryptocurrency more actively.
"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," he explained.
Chainalysis co-founder Jonathan Levin also expressed confidence that other representatives of the crypto business will follow the example of Binance and implement software solutions ensuring legal compatibility of their activities. Using Chainalysis software not only guarantees compliance with the KYC (know your customer) and AML (anti-money laundering) standards but also simplifies the process of opening bank accounts.Founded in 2014, the startup Chainalysis provides crypto transaction analysis software for crypto exchanges, international law enforcement agencies, and other clients. This allows organizations to better comply with the requirements of regulators, more effectively assess risks, as well as identify suspicious activities.The blockchain-startup announced launching Chainalysis KYT, as well as the successful closure of A series financing round in April of this year. Prior to the publication of this tool, the Chainalysis software only allowed analyzing past transactions.
Chainalysis KYT allows real-time transaction analysis. In particular, the new functionality provides cryptocurrency companies with a tool to instantly find out how reliable their counterparty is and whether it operates funds that have been previously used in illegal financial transactions.
The new tool will track illegal transactions. Although cryptocurrencies are often associated with criminal activity, many analysts conclude that the situation is not so grave. In particular, experts believe that theories of active use of digital assets as a financial instrument by terrorists is not true.
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