Topic: [2018-10-18] Binance Partners with Chainalysis to Stamp Out Money-Laundering (Read 179 times)

 I like that in the end of this article peace there is a line about banks doing a lot more laundering than cryptos , according to some reports ( Sorry i cant find the reference), cryptos have the lowest risk of laundering since one have to exit to FIAT in the end ..

Also i do not believe that they will actually be very effective but it could be a big news if the fiat society believes that his is sufficient , it could benefit to wider adoption.

Also, mostly every ignorant member of the forum will receive this news as excellent news for the market and the cryptospace's adoption.

The future will be in privacy protection. If you find a cryptocoin doing it well, invest.

"Chainalysis builds trust in blockchains between people, businesses and governments"
really? building trust by spying on cryptousers and depriving them of the little anonimity they had
now big exchanges will ask for the origin of your coins if they suspect they are tainted
know your customer, now know your transactions, next  know what you ate for breakfast
nothing exciting for an average user , money launderers will definitely find ways to get around that

As always, when you read about these developments, all sorts of agencies are basically trying to justify/legitimize that what they have been doing for years without people here even noticing. We're being spied on from every corner and angle, and I'm honestly not sure how much worse it can be, because we never had any real form of privacy on centralized exchanges and services.

The only difference is that people thought it could happen at some later point (while in reality it was happening already), and now they more and more get to know for sure that it happens.

Yeah probably they are thinking way ahead that's why they needed to do this sort of partnership to show that they can't be taken advantage by those people in using their platform to hide money launderers. Just recently, though CEX.io is requiring additional info so we might see a lot of exchanges asking more pertinent data so its really up to us if we are comfortable giving them everything, just saying. I think its enough for government t satisfy their AML qualifications though, unless they think its not sufficient anymore, they might revise it in the future.

They will track us. This might be the beginning of a dystopian future in the cryptospace. Maybe it is already here but have no comprehension of its existence because we are so distracted by the price, new developments and the FUD.

In any case, for anonymity, protection of privacy and safer transactions, you know what to use.

It looks like to me the CEO of Binance is really aiming for future-proofing their company, with a big goal of expanding their business to the world they will be increasing their chances of becoming an accessory to money laundering and other criminal activities. With this partnership is proven effective they will properly detect the potential accounts being used for this activities. But the problem that lies here is will the government accept their solution as means of AML? Or will they be asking for another solution, the one that is suitable for their demands?

Nearly a decade after the arcane origins of cryptocurrency and skeptics would not yet have depleted their argument that the technology is an A-grade digital detergent for money-laundering. In a bid to tackle the age-old assertion, however, Binance has joined with crypto compliance and investigation provider Chainalysis to keep its transcontinental ecosystem squeaky clean.

The new tie-up revealed in a press release Wednesday is a joint effort to tackle “global cryptocurrency money-laundering”, and break down the barriers found at the “intersection of cryptocurrencies, regulators, and traditional financial institutions.”
Chainalysis builds trust in blockchains between people, businesses and governments.

Backed by Wall Street investment banking heavyweight, Benchmark, Chainalysis in April secured $16 million in VC funding in a mounting push to further its coverage to government entities, cryptocurrency businesses and financial institutions, worldwide — whom the company currently claims to serve more than 150 of, globally.

With offices in New York, Washington DC, and Copenhagen, Chainalysis would presumably be no stranger to the sheer height of some regulatory hurdles. Reflecting on some of the challenges that tails the crypto industry across borders, Chainalysis Co-Founder and COO, Jonathan Levin, surmised:

    “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.”


Going Global

The new partnership sings in harmony with the ambitions of Binance CEO Changpeng Zhao, who in September stated his curveball intention to set up five to ten fiat-to-crypto exchanges in nearly every continent — giving preference to smaller, more collegial, regulatory environments that could work directly with his ever-expanding team.

Now with its global campaign map firmly in hand, Binance would be looking to get a running start with Chainalysis’ full suite of tools — which purportedly helps crypto businesses and financial institutions comply with Anti-Money-Laundering (AML) and Know-Your-Customer (KYC) regulations — and companies accepting cryptocurrency to open banks accounts.


Know Your Transaction

The wheels have already been set in motion, with Binance, the world’s leading exchange by daily volume, having implemented a complete roll-out of Chainalysis’ compliance solution — an algorithmic ‘Know Your Transaction’ (KYT) software designed to weed out and sound the alarm on suspicious transactions.

To Binance CFO Wei Zhou, a former Wall Street financial management executive, stomping out any funny business is a surefire prerequisite to global expansion. The ex-Goldman Sachs investment banker stated:

    “By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth, 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.”

Indeed, as the exchange keeps at its seemingly relentless growth trajectory — having outstripped the profits of Deutsche Bank in Q1 — it will surely be looking to build an impenetrable defense against the type of legal action that may floor even the most well-heeled of companies.

Whatever efforts are made to pull the rug out from prospective launderers, however, may do little to diminish the narrative that cryptocurrency is criminal money. As reported previously by CryptoSlate, critics have continued to lambast the asset class despite hard evidence that, each day, banks launder enough to dwarf the net sum of funds ever laundered on cryptocurrency exchanges.


Source: https://cryptoslate.com/binance-partners-with-chainalysis-to-stamp-out-money-laundering/