Since for years, despite the inherent lack of privacy measure on major public blockchain networks including Bitcoin [BTC] and Ethereum [ETH] that discourage the settlement of illicit transaction along with money laundering, awidepushed narrative usage of the cryptocurrencies is subjected to their employment in the criminal activities.
Several major cryptocurrenciesdon’t seem to be anonymousnaturally. Withimplementing KnowYourCustomer[KYC] and Anti-MoneyLaundering[AML] systems integrated by crypto exchanges,it’sverytroublesomefor criminals to utilize digital assets to settle the transfer ofillicittransactions.
Authorities and govt. agencies acrossthe worldarewell known to this non-anonymous characteristic of blockchains,thatmighthaveintendedgovernmentsincludingUnited States, Japan, andSouth Koreato legitimate andacknowledgethe cryptocurrency market.
This week, Binance hasbegan tocooperatewith Chainalysis that isa number oneblockchain analysis company that evaluates suspicious transactions and addresses,to enhanceits AML system and toadditionallylegitimise the cryptocurrency sector.
The Co-Founder and COO of Chainalysis ‘Jonathan Levin’ added:
“Cryptocurrency businesses of all sizes facea similarcore challenge: earning the trust of regulators,monetary establishmentsand users.weexpectseveralto follow Binance’slead tobuildbestAML compliance programs to satisfy regulators globally and build trust with majorfinancialestablishments.”
In 2018,several world’s mostprestigiousbanks were cracked down for Money Laundering. Danske Bank laundered $243 Bln from criminalteams, and in line with CCN’s recent report, Nordea Bank,the biggest financialgroupwithin theNordic countries, is said to have takenmanyillicit payments from bankswithin theBaltic region.
With the institutional market of cryptocurrencies growing exponentially, thealterationof AML systemsutilized by public exchangesis predictedto solidify cryptocurrencies as a recognizedassetcategoryand thedigital asset market along with well-regulated sector.
Thechief financial officerat Binance ‘Wei Zhao,’aforesaidthat maintaining the firm’s visionof skyrocketingthe freedomof moneyglobally, the exchangecanstilladhere toregulativemandateswithin thecountries it operates in.
Explaining further he added:
“Byworking in collaborationwith Chainalysis,we areready tocontinue building a foundational compliance programthat allowsfuturesectionof our growth. Our vision isto supplythe infrastructure for a blockchainsystemand increasethe libertyof moneyglobally,whereasadhering toregulative mandateswithin thecountriesweserve.”
However it’s clear for now, that the cryptocurrency sector isentering intoa newsectionof development and growth, asZhouexplained.
During the 2017 bullmarketduring whichthe valuation of the cryptocurrency market surged to $800 Bln, theassetcategoryobtainedimportantmainstreamawareness inbothcountries that support crypto and regions that have established impracticalregulativeframeworksto stoplocalblockchain markets to flourish.