Binance, the world’s leading crypto exchange, has partnered with Chainalysis, a provider of cryptocurrency tracking tools to companies and law enforcement, to better monitor fraudulent transactions on its platform.
According to the announcement, Binance has adopted Chainalysis’ compliance software, Chainalysis KYT (“know your transaction”), which works to raise live alerts on transactions involved in suspicious activity. This system leverages pattern recognition and proprietary algorithms to identify these transactions.
“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,” said Jonathan Levin, Co-Founder and COO of Chainalysis.
This news comes several weeks after a report was published that reviewed everything from frequency of console errors to user account, domain and web protocol security, showing that Binance was ranked 17th out of all exchanges in terms of security. Coinbase Pro and Kraken took the top two spots.
Despite this ranking, which largely focused on technical security, the addition of Chainalysis KYT will help Binance expand its operations globally as it works to fit the compliance standards within various jurisdictions.
Photo: Marco Verch / Flickr
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