Crypto exchange Binance is working with crypto compliance and investigation software provider Chainalysis to implement a new global compliance solution, the companies announced on Wednesday.
As part of the partnership, Chainalysis will provide access to its “Know Your Transaction” compliance software, enabling the exchange to monitor cryptocurrency transactions in real-time. In particular, the tool will look for potentially criminal or otherwise illicit activity.
“The ultimate goal of our partnership with Chainalysis is to create an environment in blockchain where everyone feels safe,” – said Binance’s chief financial officer, Wei Zhou. – “We believe the fight against money laundering to be collaborative and pro-active.”
Chainalysis’ system works by using a combination of pattern recognition, proprietary algorithms and different open-source resources to process cryptocurrency services. If suspicious activity is detected during a transaction, the software will generate an alert.
The tool can also help cryptocurrency companies to ease the process of opening bank accounts, due to its compliance with relevant KYC and AML laws.