Binance Integrates AML Platform to Comply with FATF Requirements
According to a Binance press release issued on October 3, the cryptocurrency exchange is integrating an AML solution and has also become a member of the Global Travel Rule (GTR) Alliance, which will potentially make it easier for Binance to comply with anti-money laundering standards set by the Financial Action Task Force (FATF).
The latest FATF recommendations (Travel Rule Group Recommendation No. 16) require virtual asset providers (VASPs) to establish the identity of senders and recipients of cryptocurrencies, including the name and address of the sender and recipient, as well as account information, and conduct checks to ensure that they are not involved in illegal activities. This is possible when using special AML check services like our Btrace solution. The exchange will use this tool to assess and analyze AML risks across more than 1,200 digital currencies, tokens, and various blockchains offered on its trading platform.
The latest FATF recommendations (Travel Rule Group Recommendation No. 16) require virtual asset providers (VASPs) to establish the identity of senders and recipients of cryptocurrencies, including the name and address of the sender and recipient, as well as account information, and conduct checks to ensure that they are not involved in illegal activities. This is possible when using special AML check services like our Btrace solution. The exchange will use this tool to assess and analyze AML risks across more than 1,200 digital currencies, tokens, and various blockchains offered on its trading platform.
FATF against the crypto industry
Binance decision to comply with AML policy is far from the first among large crypto companies.
Previously, an aggregator of data on the cryptocurrency market and a major player in the crypto market CoinGecko also integrated an AML solution to improve the algorithm for assessing the reliability of exchanges, as well as providing users with the opportunity to report cases of fraud and hacks.
Also, the San Francisco-based technology startup Ripple, which is behind the development of XRP, has begun conducting an analysis of XRP's compliance with anti-money laundering requirements.
In light of the latest FATF recommendations, Jeff Horowitz, chief compliance officer at major US crypto exchange Coinbase, noted:
“I understand why the FATF wants to do this. But applying banking regulations to this industry could encourage more people to conduct P2P transactions, leading to less transparency for law enforcement.”
Earlier, in 2023, FATF already expressed indignation at the pace of implementation of the Travel Rule. But the PwC report tells a different story - of the 42 countries that participated in the study, only Turkey and Uganda did not show initiative in implementing the recommendations.
And for example, in the United States, the largest representatives of the crypto world, such as Coinbase and Gemini, drew up a plan to comply with FATF requirements back in 2020.
And for example, in the United States, the largest representatives of the crypto world, such as Coinbase and Gemini, drew up a plan to comply with FATF requirements back in 2020.
AML Crypto opinion
As before, our opinion on the situation with pressure from FAFT on the crypto industry is not clear. Our company fights against criminal activities on the blockchain and counters money laundering, and in these matters we support the aspirations of FAFT. It’s hard to disagree with a number of their rules and initiatives to protect the rights of crypto users.
But on the other hand, the group’s use of regulatory rules and requirements from the banking sector and classical finance for the innovative sphere of cryptocurrencies may cause a number of inconveniences for users, as well as a violation of the basic principles of blockchain. Issues covered by FAFT require a balance between combating fraud and respecting the fundamentals of blockchain technology.
We also remind you that you can check your crypto wallet for purity, perform AML address verification, track a transaction - this and more you can do in our Btrace solution. Free AML wallet verification for every new user.
But on the other hand, the group’s use of regulatory rules and requirements from the banking sector and classical finance for the innovative sphere of cryptocurrencies may cause a number of inconveniences for users, as well as a violation of the basic principles of blockchain. Issues covered by FAFT require a balance between combating fraud and respecting the fundamentals of blockchain technology.
We also remind you that you can check your crypto wallet for purity, perform AML address verification, track a transaction - this and more you can do in our Btrace solution. Free AML wallet verification for every new user.
Check blockchain address using Btrace
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