Compliance & Data Security Pushed By Binance

Binance is one of the biggest cryptocurrency exchanges in the world and it has recently been revealed that it is actively working on improving its compliance and data security. It is planned to achieve this goal through a new partnership with Medici Ventures portfolio company IdentityMind.

In the announcement that was recently made by IdentityMind, the collaboration established between two firms is aimed at increasing the existing level of data protection and strengthening currently applied compliance measures across Binance’s worldwide operations.

This cooperation is considered to be one of the elements of a joint mission that is implemented to raise the blockchain industry standards of data protection and compliance.

IdentityMind offers cryptocurrency exchanges the chance to use services of a “real-time” platform to comply with know-your-customer and anti-money laundering regulation all across the world. These steps can help them prevent fraud and other forms of fraudulent activity. As reported by CoinSpeaker, “the startup’s services cover such processes and procedures as client registration, transaction tracking, and case management solution.”

Speaking on the matter with Binance’s Garrett Gafke, the IdentityMind CEO and President said, “our risk and compliance platform powered by a patented digital identities engine meet the scale demands of Binance’s global operations while providing a highly accurate system for assessing any global risk factors from outside entities for transactions.” Following on from this, he added, “we are excited to provide the necessary tools that will allow them to continue growing and serving more users around the world in a secure and compliant manner.”

Compliance Measures

This new partnership is a good sign for serious changes in Binance’s stance towards such issues as compliance. Previously, it used to avoid too strict compliance measures although they were widely accepted by other leading crypto exchanges including Coinbase as an example.

Usually, the process of KYC applied by Binance has been seen as rather mild especially compared to the industry’s ones. To open a trading account with Binance, you need to have only an email address which allows you to remain practically anonymous. Nevertheless, in such a situation it is impossible to detect money laundering and market manipulation.

Now though, Binance is trying to ensure trust among financial institutions on an international level but some users still suspect that enhanced KYC and AML could potentially be a sign of centralisation which is inappropriate for blockchain networks. With this in mind, the Chief Compliance Officer at Binance, Samuel Lim also commented on their new partnership saying:

“Binance is thoughtful in deciding what specific KYC information to collect. The goal is to ensure that recourse is available to victims of cryptocurrency thefts and to give all Binance users the peace of mind that their funds won’t be contaminated by those from illicit sources.”