Binance Trying to Eradicate Money Laundering so as to Validate the Crypto Market
The world’s largest crypto exchange-Binance is deliberately participating in a drive to eliminate money laundering on its platform.
The cryptocurrencies such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, and many other currencies are not innominate in nature. As the cryptocurrency exchanges have incorporated Know Your Customer (KYC) and Anti-Money Laundering (AML) systems with them, it is extremely complex for the criminals to breach the exchanges and transfer money illicitly.
The governments and authorities are well aware of the non-anonymity of blockchain tech and so the governments in Japan, US, and South Korea are motivated to validate and recognize the crypto market.
According to the Reports, Binance has begun to join forces with Chainalysis which is a major blockchain analysis firm that assesses fishy transactions and addresses, to enhance the AML system and legitimize the crypto market.
Jonathan Levin, co-founder, and COO of Chainalysis said:
“The crypto space is facing the same core challenge that is to acquire the trust of the investors, users, and the financial institutions. We expect other exchanges also to walk on the foot-steps of Binance which is working to build world-class AML programs to earn the trust of regulators globally.”
As the institutional market of cryptocurrencies is growing at an exponential rate, the firm use of AML systems in public exchanges will solidify cryptocurrencies as an established asset class.
The CFO at Binance- Wei Zhao stated in an interview:
“By working in collaboration with the Chainalysis, we are able to develop a fundamental compliance program that takes us to the next level of growth. Our aim is to facilitate infrastructure for blockchain platforms and increase the freedom of money worldwide while clinging to the regulatory frameworks stated by the authorities.”
Zhou said that cryptocurrency market is entering into a new stage of advancement, it has got substantial mainstream awareness in countries that support cryptocurrency.
As the governments are making efforts to accept crypto and blockchain businesses in order to revolutionize the industrial era, Binance is making deliberate initiatives to validate the crypto industry which in turn would simplify the process of legitimizing and recognizing the crypto market by the governments.