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Binance, Binance Exchange, Bitcoin, Cayman Islands, Ciphertrace, fatf, regulatory agencies, regulatory crackdowns, travel rules, travel rules regulations, VA, vasp, VASP, warnings
Binance announced yesterday that it deployed Ciphertrace’s Traveler system as part of its compliance efforts. Traveler is the first system designed for exchanges to comply with the travel rules proposed by the Financial Action Task Force. The exchange will be one of the first wave of exchanges to implement this automated travel rules compliance system.
Binance, one of the largest cryptocurrency exchanges in the market, announced the implementation of Traveler, which will help them comply Travel rules Established by the Financial Action Task Force (FATF). Ciphertrace is a blockchain analytics startup that created Traveler as a third-party compliance platform.
Ciphertrace claims that Traveler automates the process of complying with FATF directives, automatically establishing connections and identifying different VASPs (Virtual Asset Service Providers). Therefore, the exchange simplifies its due diligence burden by implementing due diligence.
Thanks to this transaction, the exchange will be able to quickly detect and identify money laundering activities. To this end, Binance Chief Compliance Officer Samuel Lim stated:
We are honored to work with Ciphertrace to deploy their Traveler compliance solution. As always, we are committed to providing our users with excellent products-safe, decentralized and in line with global compliance standards.
Similarly, Ciphertrace CEO Dave Jevans also mentioned this topic. The CEO emphasized:
We believe Traveler will help Binance continue to meet the highest global anti-money laundering compliance standards.
According to some reports, this type of tool will appease regulators that are currently investigating global cryptocurrency trading activities. The announcement was made after Binance faced a series of warnings from various national regulators. The Japanese cryptocurrency regulator FSA recently issued a warning against Binance. Japanese regulators stated that the company has not yet registered to provide encrypted trading services. Similarly, the British regulator issued a similar warning, stating that Binance does not have a license to conduct business in the country.
Similarly, after the Ontario Securities Commission stated that Binance was providing securities transactions without authorization, Binance ceased providing services in Ontario. Changpeng Zhao, the founder and CEO of the exchange, has repeatedly stated that Binance does not have a headquarters because “it is like Bitcoin” and avoids answering where the company is. Therefore, its location remains a mystery, and some have pointed out that the Cayman Islands may be its base.
What do you think about Binance’s implementation of Ciphertrace Traveler? Tell us in the comments section below.
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