Binance announced its implementation of crypto intelligence firm CipherTrace’s “Traveler”, a system that will comply with the global “travel rule.
CipherTrace, the leading cryptocurrency intelligence firm, connects virtual currencies and financial services, as well as fraud prevention, anti-money laundering, and financial crime prevention.
According to a Thursday announcement, Traveler will assist Binance in detecting corrupt individuals on the exchange’s platform. Moreover, Traveler automates the process of complying with the Financial Action Task Force (FATF). It automatically establishes connections and identifies various VASPs (Virtual Asset Service Providers).
Dave Jevans, CEO of Ciphertrace highlighted:
“We are confident that Traveler will assist Binance in maintaining the highest levels of global anti-money laundering compliance.”
Regulations After Several Warnings
Several countries warned Binance for regulation issues recently. As a result of incorporating this tool is to satisfy regulators who are currently investigating crypto exchange activities worldwide. According to Japanese regulators, the company has not registered to provide cryptocurrency trading services, so the Japanese FCA issued a warning recently.
Similarly, UK regulators issued a similar warning, stating that Binance lacked the necessary license to conduct business in the country. More so, Singapore Financial Watchdog announced its “Follow Up” on Binance.
Binance ceased operations in Ontario after the Ontario Securities Commission determined that Binance was engaging in unlicensed security trading. However, Binance faces a slew of regulatory challenges from financial watchdogs in a variety of markets, including Japan, the United Kingdom, and Canada. Although, it is a really tough time for the cryptocurrency market.
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