Binance Partners With Chainalysis To Tighten Up Law Compliance

Cryptocurrency exchanges don’t live in a void. They exist within the regulatory frameworks of the states where they are physically located. And that is why they must abide by the rules and regulations of the country of registration. Sadly, a big number of them do not comply with all the requirements that the law dictates. But big exchanges must be always focused on compliance to avoid battles and lawsuits. Binance know this very well because they had problems with Japanese regulators because they had been operating without a permit in Japanese soil. To avoid all of these problems in the future, Binance has partnered with Chainalysis.
Chainalysis is a cryptocurrency focused compliance firm that focuses on making exchanges and crypto startups more clear and creates compliance plans for every kind of startup out there. Binance has seen the potential of having a true aid in completing law requirements and tighten up identity policies and also anti-money laundering procedures.
Chainalysis is no joe when it comes to auditing crypto assets and its entry point and the source of the funds. They have a system called KYT (Know Your Transaction) that supposedly can track the origin and end of a transaction and the possible origin of the funds, emitting an alert when it detects a suspicious transaction being made into the platform.
The CFO of Binance, Wei Zhou, talked positively about the partnership, saying:

“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.”

clearly expressing that for them to grow, they must adhere tightly to the security requirements of every country. At the same time, he talked about the necessity of exchanges and also of cryptocurrency startups to be 100% compliant to facilitate their relationships with banks and easily open bank accounts.
With this move, Binance steps even higher in its status as a trustable and accountable cryptocurrency exchange for the masses, with more of ten million of traders adhered to these new security procedures that will secure transactions to avoid money laundering and terrorism financing in the near future.
Lately, Chainalysis has been on the headlines due to a controversial investigation that found out that whales could be responsible for stabilizing the market, contrary to the popular belief that says that whales actions are partly responsible for market crashes and past price drops.