Binance Deploys Crypto Monitoring ‘Traveler’ System to Comply With FATF Travel Rule
Binance, the biggest cryptocurrency exchange on the market, has announced that Traveler will be implemented. This system will allow them to comply with the Financial Action Task Force’s Travel Rule. Traveler was created by Ciphertrace, an analytics company that uses blockchain technology.
Ciphertrace claims that Traveler automates compliance with FATFs mandate by automatically connecting and identifying various VASPs (Virtual Asset Service providers). By implementing it, exchanges can reduce their due diligence burden.
This deal would allow the exchange to quickly identify and detect money laundering. Samuel Lim, chief compliance officer of Binance stated that this is why:
Ciphertrace is a proud partner of ours in the deployment of their Traveler compliance system. We are determined to provide a superior product for our customers, one that is secure, decentralized and meets international compliance standards.
The CEO of Ciphertrace, Dave Jevans, also spoke out on the subject. The CEO stressed that:
We are certain that Traveler will assist Binance in meeting the highest global Anti-Money Laundering Compliance standards.
Crypto Industry Hit by Regulatory Crackdown
Some reports claim that this tool would be useful for regulators who are currently looking into crypto exchange activity around the globe. This announcement comes after Binance received a series warnings from regulators across several countries.
Recently, Binance was warned by the FSA, a Japanese cryptocurrency watchdog. Japanese regulators have stated that the company is not authorized to provide crypto trading services. Similar warnings were issued by UK regulators, which stated that Binance did not have a permit to operate in the country.
Binance also stopped offering services in Ontario, after the Ontario Securities Commission stated that Binance offered securities trading without authorization. Changpeng Zhao (founder and CEO of the exchange) repeatedly stated that Binance does not have a headquarters as ‘it’s like Bitcoin’. He avoided answering the question about where the company is located. Its location remains a mystery. Some have pointed to the Cayman Islands as a possible base.