- Binance and Chainalysis work together to solve crypto-related money laundering issues.
- The solution will make it easier to comply with AML regulations.
About 3-4% of illegal proceeds received by European criminals are laundered with cryptocurrencies, according to Rob Wainwright, head of Europol, Europe’s police agency. It amounts to $4.2bn-5.6B of crypto-laundered money annually. Meanwhile, international criminal groups are using digital assets as a detergent for third dirty money, even more, America’s Drug Enforcement Administration reports.
To stop the trend and the accusations against cryptocurrency-related businesses, the cryptocurrency compliance and investigation solutions Chainalysis and one of the leading cryptocurrency exchange Binance created a compliance solution that will help address the issues that involve money laundering loopholes at the intersection of cryptocurrencies, regulators and traditional financial institutions.
Chainalysis has developed a compliance software that allows monitoring cryptocurrency transactions in real-time to raise alerts in suspicious transactions. The software uses pattern recognition, dedicated algorithms, and open source references to analyze transactions flow and identify possible threats.
“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,” Jonathan Levin, Co-Founder and COO of Chainalysis. commented in the official press release.
This solution will make it easier for companies to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, and, consequently, soften banks’ stance on crypto-related companies.
“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,” said Wei Zhou, CFO at Binance.
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