- Additional security is needed for crypto-oriented platforms because of the inherent hazards.
- There will be a screening process on the Binance platform.
To ensure sanctions compliance and protect the Binance platform from the possibility of unlawful crypto transactions, the well-established cryptocurrency exchange has teamed with two companies, including analytical data business Kharon and cloud-native screening service Neterium.
The cooperation was announced on Wednesday by enhancing the exchange’s Know-Your-Customer (KYC) standards and enhancing sanctions screening. There will be a screening process on the Binance platform to identify illicit transactions of the cryptocurrency.
Anti-money Laundering Prevention
An increase in innovative data solutions will help trading platforms better identify those responsible for illegally moving cryptocurrency money. The top cryptocurrency exchange has become the first platform to build a compliance program by incorporating sophisticated Know Your Customer (KYC), risk, and sanctions solutions with an average daily trading volume of over $24 billion.
When penalties are imposed, both technologies increase the level of confidence in exchange screening operations. Binance has extended its services throughout the globe by complying with regulations and handling rising risks.
In an interview with Bloomberg, CZ, the founder of the crypto exchanges, initially declined to call for restrictions on “regular people” when the EU was implementing sanctions over the Russia-Ukraine crisis. However, Binance followed suit and restricted Russian users. Consequently, Russians who own cryptocurrencies worth more than 10,000 euros may only withdraw them.
According to Kharon’s Chief Client Officer, Howard Mendelsohn, additional security is needed for crypto-oriented platforms because of the inherent hazards. Similarly, Florence Vicentini, Chief Commercial Officer of Neterium technology, said that the company has the necessary expertise to address complicated use cases.