Chainalysis, a provider of cryptocurrency compliance and investigation solutions, today announced the roll-out of its compliance solution with Binance, a top cryptocurrency exchange company, to help address the challenges at the intersection of cryptocurrencies, regulators and traditional financial institutions.
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth,” said Wei Zhou, CFO at Binance. “Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”
Chainalysis’ compliance software, Chainalysis KYT (Know Your Transaction), is a real-time transaction monitoring solution for cryptocurrencies. The software uses pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of cryptocurrency services to raise real-time alerts on transactions involved in suspicious activity.
The Chainalysis solution enables cryptocurrency businesses and financial institutions to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, while simultaneously making it easier for companies supporting cryptocurrencies to open bank accounts.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”
In April, Chainalysis secured $16 million in Series A funding led by Benchmark to deploy Chainalysis KYT and expand its coverage of cryptocurrencies. It serves over 150 leading cryptocurrency businesses, financial institutions, and government agencies.