Binance, the largest cryptocurrency exchange by trading volume, has procured the services of cryptocurrency compliance solutions firm Chainalysis, to better ensure meeting anti-money laundering (AML) and know-your-customer (KYC) requirements.

The announcement on the Chainalysis blog comes at around the time members of the Group of 20 (G20) had committed to apply AML regulatory standards for cryptocurrencies.

Chainalysis Chief Operating Officer Jonathan Levin said, “Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”

Binance Chief Financial Officer Wei Zhou said, “Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”

Chainalysis claims that its software, Chainalysis KYT (Know your transaction), is the only real-time transaction monitoring solution for cryptocurrencies, which works by “pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity.” The company, founded in 2014, has over 150 clients worldwide, including global law enforcement agencies and regulators.

Countries have provided regulatory frameworks that integrate AML compliance for the cryptocurrency trade. As of October 15 in Norway, new regulations cover “platforms that facilitate trading and exchanges by connecting buyers and sellers,” which exempts the trade of cryptocurrencies with other cryptocurrencies.

Australia has had its AML compliance legislation since April, which among other things requires exchanges to report transactions involving physical currency of AUD10,000 or more.

Last week, Binance delisted four altcoins, saying certain factors were considered, including “evidence of unethical/fraudulent conduct,” and “responsiveness to our periodic due diligence,” as well as quality of development, and communication with the public.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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