Binance doesn’t want to be a washing machine.
Aiming to meet regulatory requirements where it operates, the world’s largest cryptocurrency exchange has finished installing a compliance system from Chainalysis designed to sniff out suspicious transactions used for money laundering.
In a press release announcing the news, Chainalysis said its KYT (“Know Your Transaction”) software is the only real-time transaction monitoring system for cryptocurrencies. The software uses pattern recognition, algorithms and millions of open-source references to pinpoint and group thousands of cryptocurrency services. It issues live alerts on shady-looking transactions.
“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,” Binance CFO Wei Zhou said in the press release.
Binance is the world’s largest cryptocurrency exchange by trade volume. It can process 1.4 million orders per second.
The exchange’s CEO, Changpeng Zhao, said last month at the Consensus Singapore conference that he hopes to establish five to 10 fiat to crypto operations in different continents.
Chainanalysis provides cryptocurrency compliance and investigation products and services to government agencies, financial institutions and exchanges and cryptocurrency businesses.
In April, the company secured $16 million in funding from venture capital firm Benchmark largely to expand the number of cryptocurrencies it can track and to boost sales.