Leading cryptocurrency exchange by daily trading volume Binance has tapped the services of Silicon Valley-based blockchain intelligence firm CipherTrace to comply with the latest FATF guidelines.
CipherTrace now adds the recently launched Binance Chain blockchain to its portfolio of cryptocurrencies it tracks. Binance Chain is the self-developed blockchain of Binance which also supports the native Binance Coin virtual asset. In a Tuesday, November 5th press release, Binance stated that,
“CipherTrace will enable developers, investors and regulators to browse the Binance Chain blockchain, identify high-risk addresses and set controls to protect decentralized applications (DApps), exchanges or other cryptocurrency-based applications.”
However, despite its apparent access to the Binance Chain blockchain, Binance maintains that this does not impede the user privacy of their transactions and the safety and security of the data stored by the exchange as a result of the transactions being conducted on the blockchain.
“Users can rest assured that Binance will uphold its usual high standards of user security and data protection,” said Samuel Lee, the Binance chief compliance officer.
The FATF recently released a new Travel rule that affects all registered exchanges. CipherTrace is one of the only blockchain analysis firms to integrate the new guidelines to its processes which allows exchanges such as Binance and other virtual asset businesses to tap into the firm’s technology without having to create their proprietary software.
“As the blockchain ecosystem continues to mature, investors and regulators across the globe demand better transparency, security, and compliance,” Dave Jevans, the CEO of CipherTrace said in a statement. “Binance continues to prove it is serious about protecting its investors and is taking the necessary measures needed to grow and diversify its audience.”
Recently, CipherTrace announced the expansion of its service to cover more than 87% of the leading cryptocurrency markets. This included supporting transaction tracking on leading blockchain networks such as Ethereum, Tether [USDT], Bitcoin Cash and Litecoin.
Conspicuously missing from that list at the time was Binance coin and several other cryptocurrencies based on the BEP2 token standard supported on the Binance Chain blockchain. However, now it is possible to track all tokens on the Binance Chain which means that Binance as an exchange and its affiliated properties are compliant with the latest FATF travel rule.
“This is a major win for the community-driven Binance Chain; our users can soon expect more digital token/asset support across our fast-growing ecosystem and lines of businesses,” Lim said. “While we constantly strengthen our compliance and security controls to align with global regulatory standards, we stay true to our roots of being user-centric. This partnership with CipherTrace would ultimately encourage greater community involvement, developer participation and public interest in Binance Chain and pave the way for larger mainstream adoption.”