Binance, the world’s largest digital assets exchange, had been one of the greatest success stories in the unregulated crypto space. Like many of its peers, however, Binance too is facing the new swath of regulation with some difficulty.
As per a Bloomberg report, it has received notices from the authorities in both Japan and Hong Kong where new rules have been instituted for the crypto sector. Binance CEO Chengpeng Zhao, or CZ, as he is better known, has indicated that the company is looking to work with the authorities to build its reputation as a stable and secure platform.
The same report goes on to mention how the exchange has the least rigorous KYC norms in the industry. It also suggests how it endorses ICOs which have the features of securities, but none of the compliance requirements. In this respect, the company seems to have started making efforts, thanks to the new deal with IdentityMind. Binance announced the deal in its official blog.
The Deal with IdentityMind
IdentityMind is a portfolio firm of Medici Ventures, which provides real-time platform for KYC and AML norms compliance to cryptocurrency exchanges all over the world. The firm offers client-onboarding, transaction monitoring, and case management services. IdentityMind is known for its capacity to handle large scale data, and in this respect, it is best suited for such a partnership with Binance.
This is not the first effort made by Binance to make its platform more compliant with the norms. It had recently collaborated with Refinitiv, the financial and risk business division of Thomson Reuters, for creating an automated system which would streamline the KYC process.
In fact, one of its first efforts had been in October when the exchange had partnered with Chainanalysis, a security software service, to monitor crypto transactions and detect illicit activities on the platform.
This deal with IdentityMind is another effort in the same direction. In the long run, these efforts will help the company to grapple with the regulations, as they are not likely to go away any time soon.