Binance and Chainalysis fight against Bitcoin money laundering


Binance, the world’s largest Bitcoin Exchange by market capitalisation, is planning action against money laundering with a crypto-currencies. Through the Integration of the Chainalysis-KYT-Software, the stock exchange builds on its Compliance with the traditional financial market regulations.

How Chainalysis on Thursday, the 18. October, announced the company works together with the crypto-exchange Binance. For the preparation of the Compliance in the area of money laundering Binance accesses the Chainalysis Software KYT (“Know Your Transaction” – in English: “Know Your transaction”). In the case of KYT is to company information, according to a specially for the Release of money-laundering activities-developed Software. The function describes Chainalysis on Medium as follows:

“Chainalysis KYT provides real-time Feedback about the underlying purpose of the transactions, and feed this Feedback into the Engine of the transaction processing of the stock exchanges. Compliance staff use our Dashboard to see alerts or generate high-risk customers, and export reports about suspicious activities.“

Chainalysis KYT is based on a series of proprietary Algorithms, by using a number of open source resources pattern in the transaction behavior to detect monitored Wallets and in case of suspicion, report.

Since this year, the Tool comprises, in addition to the analysis of BTC, the Monitoring of the BCH.

Binance is driving professionalization

About Binance expansion efforts, to Africa we reported already in detail. The cooperation with Chainalysis is, therefore, in the light of the growth intentions of the stock exchange to see. These are accompanied by strict regulations, which must comply with the Exchange. To the CFO, Wei Zhou Binance -:

“Through the cooperation with Chainalysis we can build a Compliance program that will enable the next Phase of our growth. Our Vision is to be the infrastructure for a Blockchain Ecosystem to provide and promote the freedom of the money in the world, while we adhere to the statutory requirements in the countries in which we operate.“

These statutory provisions are the Binance to have induced like, the partnership with Chainalysis. Because the Tool helps the Exchanges, the statutory Know-Your-Customer and Anti-Money-Laundering-to comply with regulations. Through this type of Compliance exchanges could, ultimately, get hold of your awaited Bank licenses.



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