By Staff Writer
Reports have emerged that the global crypto exchanges are bracing themselves for anti-money laundering rules announced by the Paris-based financial crime watchdog, the Financial Action Task Force (FATF). The world’s largest crypto exchange Binance has reportedly tied up with RegTech company, Confirm, to help comply with those rules, according to a statement by Coinfirm.
In June, the FATF issued guidance regarding the much-dreaded “Travel Rule” – a new agreement among its 37 member nations that impose stringent regulations to collect data regarding their customers’ transactions and share that information with each other when clients move funds between companies.
As the crypto industry continues to mature, blockchain companies are increasingly looking for ways to avoid becoming targets for regulatory agencies such as FATF.
According to a statement from Binance, Coinfirm’s “blockchain agnostic” platform will provide its exchange with alerts and an investigation system that will allow it to examine any transactions that appear suspicious.
Binance can then, in theory, make decisions regarding these transactions and potentially stop attempts at money laundering and other financial crime before they can occur.
“Coinfirm and Binance have mutual values in ensuring trust and security for cryptocurrencies, and we are confident in bringing that to the market together,” Pawel Kuskowski, co-founder and CEO of Coinfirm, said in a statement.