Since for years, despite the inherent lack of privacy measure on major public blockchain networks including Bitcoin [BTC] and Ethereum [ETH] that discourage the settlement of illicit transaction along with money laundering, a wide pushed narrative usage of the cryptocurrencies is subjected to their employment in the criminal activities.
Several major cryptocurrencies don’t seem to be anonymous naturally. With implementing Know Your Customer [KYC] and Anti-Money Laundering [AML] systems integrated by crypto exchanges, it’s very troublesome for criminals to utilize digital assets to settle the transfer of illicit transactions.
Authorities and govt. agencies across the world are well known to this non-anonymous characteristic of blockchains, that might have intended governments including United States, Japan, and South Korea to legitimate and acknowledge the cryptocurrency market.
This week, Binance has began to cooperate with Chainalysis that is a number one blockchain analysis company that evaluates suspicious transactions and addresses, to enhance its AML system and to additionally legitimise the cryptocurrency sector.
The Co-Founder and COO of Chainalysis ‘Jonathan Levin’ added:
“Cryptocurrency businesses of all sizes face a similar core challenge: earning the trust of regulators, monetary establishments and users. we expect several to follow Binance’s lead to build best AML compliance programs to satisfy regulators globally and build trust with major financial establishments.”
In 2018, several world’s most prestigious banks were cracked down for Money Laundering. Danske Bank laundered $243 Bln from criminal teams, and in line with CCN’s recent report, Nordea Bank, the biggest financial group within the Nordic countries, is said to have taken many illicit payments from banks within the Baltic region.
With the institutional market of cryptocurrencies growing exponentially, the alteration of AML systems utilized by public exchanges is predicted to solidify cryptocurrencies as a recognized asset category and the digital asset market along with well-regulated sector.
The chief financial officer at Binance ‘Wei Zhao,’ aforesaid that maintaining the firm’s vision of skyrocketing the freedom of money globally, the exchange can still adhere to regulative mandates within the countries it operates in.
Explaining further he added:
“By working in collaboration with Chainalysis, we are ready to continue building a foundational compliance program that allows future section of our growth. Our vision is to supply the infrastructure for a blockchain system and increase the liberty of money globally, whereas adhering to regulative mandates within the countries we serve.”
However it’s clear for now, that the cryptocurrency sector is entering into a new section of development and growth, as Zhou explained.
During the 2017 bull market during which the valuation of the cryptocurrency market surged to $800 Bln, the asset category obtained important mainstream awareness in both countries that support crypto and regions that have established impractical regulative frameworks to stop local blockchain markets to flourish.