Binance, the world's largest cryptocurrency exchange by trading volume, has just announced it has deployed CipherTrace, a solution developed to enable compliance with global "travel rule" regulations, according to a press release shared with iHodl.
The product has been specifically designed to help Virtual Asset Service Providers (VASPs), including crypto exchanges such us Binance, custody providers, OTC trading desks, banks and other financial institutions, comply with the travel regulations established by the Financial Crimes Enforcement Network (FinCEN) and the Financial Action Task Force (FATF).
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In addition, the product will also help Binance, which has become one of the first cryptocurrency exchanges to deploy the product, detect and prevent bad actors from using the platform for illegal activities.
CipherTrace scans addresses associated with incoming crypto transactions and identifies those that might have been used in any illegal activity.
It must be noted that the information is only shared with other Travel Rule-compliant institutions in order to prevent data leakage and to preserve confidentiality.