Binance recently announced its partnership with Refinitiv to boost its know-your-customer (KYC) protocols. The cryptocurrency exchange behemoth says its collaboration with the Refinitiv will create a safer and more trustworthy trading ecosystem.
Digitizing Cryptocurrency KYC Protocols
According to a press release issued by Refinitiv on Tuesday (November 20, 2018), the former Thomson Reuters Financial & Risk Business Division announced that its partnership with Binance. Refinitiv will begin providing automated KYC applications to the cryptocurrency trading platform.
Binance plans to leverage Refinitiv’s unique expertise into creating advanced KYC protocols. The partnership will also ensure and due diligence on counterparty risk management for cryptocurrency trading. Refinitiv is a leading KYC as a Service (KYCaaS) provider for more than 40,000 customers including leading financial establishments. Blackstone group acquired a majority stake in the company from Thomson Reuters in mid-2018.
Caitlin Sinclair, Refinitiv’s head of proposition for KYCaaS believes the collaboration will enable Binance to digitize its KYC process. Regulators across the globe have continued to call for improved KYC and AML protocols.
Robust KYC Necessary for Global Expansion
For Binance, digitizing its KYC process is part of the company’s drive to solidify its place in the emerging industry. Commenting on the deal, the company’s Chief Financial Officer, Wei Zhou, said:
As we continue to grow our business globally, we will also continue to grow our compliance competency by partnering with well-recognized market leaders for KYC solutions. Following existing Anti-Money Laundering (AML) standards in the fiat world and incorporating advanced third-party transaction monitoring tools, as well as our own proprietary tools, will help us build trust with regulators and financial institutions.
In a Medium post published on Wednesday, Binance declared Refinitiv possessed the requisite technical expertise to deliver a robust KYC framework. Recently, the company revealed plans to attract more interest from big-money investors with a slew of cryptocurrency trading products and services.
In a related development, the top-ranked exchange platform based on 24-hour trading volume also inked another partnership deal with Chainalysis to combat money laundering. The collaboration will see the integration of Chainalysis Know Your Transaction (KTY) framework on the Binance platform.
Chainalysis KYT is a legacy anti-money laundering (AML) system that provides real-time monitoring of cryptocurrency transactions. Binance hopes to use the protocol to thwart money laundering activities on its platform.
Do you think the partnership between Binance and Refinitiv will lead to improved KYC protocols for the former? Let us know your thoughts in the comment section below.
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