Binance Integrates Coinfirm’s AML Platform to Comply With FATF Rules
Major cryptocurrency exchange Binance has partnered with crypto analytics startup Coinfirm to improve its anti-money laundering (AML) compliance.
New platform for FATF compliance
The integration of Coinfirm’s blockchain-agnostic AML Platform will purportedly streamline Binance’s compliance with the AML rules issued by the Financial Action Task Force (FATF), according to a press release published on Oct. 3.
The new measures set up by the FATF require that cryptocurrency operators establish the identity behind crypto funds senders and recipients, conduct proper due diligence to ensure they are not engaging in illicit activity, and develop risk-based programs, among others.
Binance will deploy Coinfirm’s products to assess and analyze AML risk in regards to more than 1,200 digital currencies, tokens and diverse blockchain offered on its trading platform.
FATF shakes up the crypto industry
As previously reported, crypto market aggregator CoinGecko joined the network of Coinfirm in order to improve its exchange Trust Score algorithm, as well as provide users with a means of reporting scams and hacks.
Also, San Francisco-based tech startup Ripple, which is largely behind XRP, signed an agreement with Coinfirm, wherein the latter will explore XRP's compliance with AML provisions.
Commenting on the FATF’s intention to strengthen control over cryptocurrency exchanges, Jeff Horowitz, chief compliance officer at American major crypto exchange Coinbase, said:
“I get why the FATF wants to do this. But applying bank regulations to this industry could drive more people to conduct person-to-person transactions, which would result in less transparency for law enforcement.”