Binance to tighten KYC to comply with sanctions

The exchange has partnered with analytics firm Kharon and cloud diagnostics provider Neterium

27.05.2022 - 12:40

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What’s new? Binance, the largest cryptocurrency exchange by trading volumes, will strengthen its know your customer (KYC) procedures to comply with sanctions restrictions. The exchange has partnered with analytics firm Kharon and cloud diagnostics provider Neterium. The companies’ tools will complement Binance’s existing user identification system and help the exchange comply with regulatory requirements in a high-risk environment. This is reported in a press release by Kharon.

Kharon’s press release

What is known about Kharon? It is a company that provides data and analytical tools to streamline the core functions of financial crime compliance programs. Kharon was founded by former US Treasury Department officials and experienced software engineers.What is known about Neterium? It is a company that uses an API to prevent financial crimes. Neterium was founded in 2017. The company is led by a team of industry experts in the field of Financial Crime Compliance (FCC).

What events happened before? In 2021, Binance imposed a mandatory customer verification procedure. The decision was made amid stricter regulatory requirements of regulators around the world and to obtain approvals for the exchange to operate legally in most countries.

In November 2021, Binance CEO Changpeng Zhao reported that the exchange had lost about 3% of customers after the introduction of mandatory identification.

On April 28, cryptocurrency exchange Coinbase unveiled a new set of anti-fraud tools, Coinbase Intelligence. As part of this project, the exchange introduced Know Your Transaction (KYT) and an update to Coinbase Analytics. KYT would allow companies to identify suspicious transactions through an API interface and track transfers in real-time.

On May 9, SafePal, a decentralized cryptocurrency wallet, obliged Binance Trading dApp users to comply with anti-money laundering (AML) and know your customer (KYC) procedures.

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