Whenever discussions are held about cryptocurrency and regulations surrounding it, one of the most common talking points is money laundering and specifically, anti-mn=oney laundry measures. This is because cryptocurrency offers a layer of privacy and traceability that does not exist with fiat currency and as such, is susceptible to being exploited by criminals for these activities. Even Facebook is currently battling allegations that its Libra token could be used for money laundering purposes by explaining the measures to be put in place to prevent this. 


It seems they are not the only ones that are doing this as an October 3, 2019 press release reveals that Binance has partnered with Coinfirm, a crypto analytics start up, to improve its anti-money-laundering compliance with the use of their platform.

Compliance and Crypto

As part of this new development, Coinfirm’s platform will be integrated into Binance in order to become more compliant with new requirements from the Financial Action Task Force in order to prevent money laundering and other illegal activities.

There are a number of new requirements of being put forward by the FATF and this includes crypto exchanges be required to verify this senders and receivers of the cryptocurrency to make sure that no illegal activities are taking place and thus, due diligence has to be carried out as well as risk-based programs. Binance will also apply Coinfirm products to conduct research on over 1200 tokens and products that have been offered on the platform and this way, they are both protecting consumers and making sure that they are compliant.

These new requirements that have been put forward by the FATF have certainly kept crypto organizations on their toes in order to ensure compliance and this has sent a lot of business towards Coinfirm as both CoinGecko and Ripple have signed agreements with them in the recent past in order to deploy their products and ensure they are being compliant.

However not everyone feels that these new requirements will be beneficial as Jeff Horowitz, who is the chief compliance officer at Coinbase, has stated that they may do more harm than good.

“I get why the FATF wants to do this. But applying bank regulations to this industry could drive more people to conduct person-to-person transactions, which would result in less transparency for law enforcement.” He said.

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