CipherTrace to Provide Anti-Money Laundering for Binance Chain and BNB
CipherTrace, an American blockchain security firm, is going to provide Anti-Money Laundering (AML) controls for Binance Chain and its native asset Binance Coin (BNB).
On November 5, Binance announced that Binance Chain, a public blockchain of Binance, and the underlying blockchain for Binance DEX, is expected to improve its AML procedures through CipherTrace.
Specifically, CipherTrace will be providing Binance Chain with institutional-grade AML controls to increase the adoption of the Binance Chain blockchain.
Within the initiative, CipherTrace will enable global developers, investors and regulators to access the Binance Chain blockchain for discovering data such as high-risk addresses.
Likewise, Binance wrote in its blog post that CipherTrace will be helping those entities to set various controls to protect decentralized applications, exchanges or other crypto-based applications.
Samuel Lim, the Chief Compliance Officer (COO) at Binance, claimed that the initiative will not affect Binance users’ security and data protection. The executive noted that customer information will not be shared with third parties as a result of the new AML practice.
“Users can rest assured that Binance will uphold its usual high standards of user security and data protection.” Samuel Lim
Lim also denied that whether this move would affect the listing of privacy coins such as Monero (XMR) in the future by saying that Binance does not comment on specific tokens and maintains the highest integrity in its listing due diligence process.
However, in the announcement, Lim considered the move as a “major win for the community-driven Binance Chain,” noting that Binance users can soon expect more digital token support across its ecosystem.
In the meantime, online critics have outlined the third party disclosure risks associated with AML practices by companies such as CipherTrace and Chainalysis.
Looking forward to chain analysis companies like @ciphertrace and @chainalysis getting hacked. These people sell your data to 3 letter agencies and governments WITHOUT your permission. https://t.co/SzVYRIAY5h — Vortex [Jan/3🔑] (@theonevortex) November 5, 2019
It has been analyzed that the support of CipherTrace for BNB and Binance Chain follows the recent expansion of CipherTrace services to up to 700 cryptocurrencies including Ether (ETH), Tether (USDT), Bitcoin Cash (BCH) and Litecoin (LTC) on October 15.
Claiming that CipherTrace has expanded to support 87% of the transactional volume of the top 100 cryptos, the firm denied specifying which cryptos will not be supported on the platform at the time.
Thus, on October 21, David Jevans, the CEO of CipherTrace, argued that crypto regulations by global regulators such as those by the Financial Action Task Force’s would trigger a shift of criminal activity from Bitcoin (BTC) to privacy coins.
Source: binance.com | cointelegraph.com
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