Binance proclaimed yesterday it deployed Ciphertrace’s Traveler system as a part of its compliance efforts. Traveler is the initial system designed for exchanges to fit the Travel Rule planned by the Financial Action Task Force. The exchange would be among the primary wave of exchanges implementing this automatic Travel Rule compliance system.
Binance Implements Ciphertrace’s Traveler Protocol in Its Trading Platform
Binance, one among the biggest cryptocurrency exchanges within the market, proclaimed the implementation of Traveler, a system that may facilitate them and fits the Travel Rule established by the Financial Action Task Force (FATF). Ciphertrace, a blockchain analytics startup, created traveler as a third-party compliance platform.
Ciphertrace claims traveler automatizes the method of yielding with FATFs mandate, mechanically creating connections and characteristic totally different VASPs (Virtual plus Service Providers). Therefore, exchanges modify their due diligence burden by implementing it.
As a consequence of this deal, the exchange would be able to find and determine cash launders quickly. For this reason, Samuel Lim, Chief Compliance Officer of Binance, stated:
“We are proud to partner with Ciphertrace to deploy their Traveler compliance solution. As always, we have a tendency to be committed to providing a superior product for our users – one that’s secure, suburbanised, and meets international compliance standards.”
Likewise, Ciphertrace’s business executive Dave Jevans additionally named the topic. The business executive stressed:
“We are confident that Traveler can facilitate Binance to still meet the best standards for international Anti-Money Laundering compliance.”
Regulatory Crackdowns aimed toward the Crypto business
According to some reports, this sort of tool would appease regulators that presently work crypto exchange activities everywhere on the planet. This announcement comes when Binance faced a series of warnings from regulators in many countries. The japanese cryptocurrency watchdog, the FSA, issued a warning against Binance recently. Japanese regulators state the corporate has not registered to supply crypto mercantilism services. Similarly, United Kingdom regulators additionally issued an analogous warning, stating Binance didn’t have a allow to conduct business within the country.
In the same approach, Binance stopped giving its services in Ontario when the Ontario Securities Commission said Binance offered security trading with no authorization. Changpeng Zhao, founder, and business executive of the exchange has repeatedly declared Binance has no headquarters as a result of “it is like Bitcoin”, avoiding respondent wherever the corporate relies. Consequently, its location has remained a mystery, with some information at the Cayman island as its attainable base.