Binance And Chainalysis Start Fighting Against Crypto Money Laundering
Chainalysis, a crypto company, together with Binance, the largest digital exchange, have begun a program to curb illegal activity on the crypto market, including money laundering.
Chainalysis KYT (“Know Your Transaction”), a software developed by the crypto firm, will help monitor all crypto transactions in real time and identify a variety of crypto services in order to detect suspicious activities in a timely manner.
Jonathan Levin, chief operating officer and co-founder of Chainalysis, believes that many institutions will follow Binance’s example by launching KYT in order to gain trust and approval from financial regulators, authorities, and consumers.
Wei Zhou, chief financial officer at Binance, stated that the collaboration with Chainalysis will help them in the further development of the crypto trading platform. Zhou intends to expand the boundaries of the blockchain ecosystem, while acting within the framework of the laws of the countries where the crypto exchange services are available.
The company’s software is compatible with the “know your customer” procedure and the detection of money laundering, therefore, it will allow crypto firms to follow the requirements of regulators and facilitate the process of opening bank accounts.
In the spring, Chainalysis raised $16 million during Series A funding round to develop the KYT software and thoroughly research the field of cryptocurrencies.
As previously reported, the Central Bank of Zambia announced that cryptocurrencies cannot be legal due to the risks of money laundering and hacker attacks.