Binance announced yesterday it deployed Ciphertrace’s Traveler system as part of its compliance efforts. Traveler is the first system designed for exchanges to comply with the Travel Rule proposed by the Financial Action Task Force. The exchange would be among the first wave of exchanges implementing this automatic Travel Rule compliance system.
Binance Implements Ciphertrace’s Traveler Protocol in Its Trading Platform
Binance, one of the largest cryptocurrency exchanges in the market, announced the implementation of Traveler, a system that will help them comply with 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 process of complying with FATFs mandate, automatically making connections and identifying different VASPs (Virtual Asset Service Providers). Therefore, exchanges simplify their due diligence burden by implementing it.
As a consequence of this deal, the exchange would be able to detect and identify money 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 are committed to providing a superior product for our users – one that is secure, decentralized, and meets global compliance standards.
Likewise, Ciphertrace’s CEO Dave Jevans also referred to the subject. The CEO stressed:
We are confident that Traveler will help Binance to continue to meet the highest standards for global Anti-Money Laundering compliance.
Regulatory Crackdowns Aimed at the Crypto Industry
According to some reports, this type of tool would appease regulators that are currently investigating crypto exchange activities all over the world. This announcement comes after Binance faced a series of warnings from regulators in…