Binance Increases Security by Tightening KYC and Sanctions Screening

Binance, a well-known cryptocurrency exchange, has teamed with two organizations, including analytical data firm Kharon and cloud-native screening provider Neterium, to verify sanction compliance and protect the platform from the potential risk posed by unlawful crypto transactions.

The agreement, announced on Wednesday, aims to strengthen the exchange’s Know-your-customer (KYC) processes and improve sanction screening. Neterium will strive to transfer Kharon’s data into Binance’s screening environment in order to detect unlawful transfers.

This action will encourage the adoption of new data solutions to improve trading platforms’ ability to detect actors behind the unlawful movement of cryptocurrency monies.

Chagri Poyraz, Binance‘s Global Head of Sanctions, stated,

As we continue to maintain and build the world’s largest cryptocurrency exchange, we are committed to building an industry-leading compliance program. Working with Kharon and Neterium allows us to leverage Kharon’s best-in-class data with Neterium’s innovative technology to address our risk.

The top cryptocurrency exchange, with a $24 billion average daily trading volume, has become the first platform to build a compliance program by adopting advanced Know Your Customer (KYC), risk, and sanctions solutions.

When tightening sanctions, using both technologies increases trust in exchange screening activities. Binance expands its services globally by meeting regulatory standards and tackling rising risk.

When the EU imposed sanctions on crypto exchanges due to the Russia-Ukraine war, the founder, CZ, first declined to call for restrictions on “normal people” in an interview with Bloomberg. However, after Russia’s invasion of Ukraine, Binance followed suit and restricted Russian users. As a result, Russians owning cryptocurrency valued more than 10,000 euros have been confined to withdrawal-only mode.

Howard Mendelsohn, Chief Client Officer of Kharon, stated that crypto-oriented platforms require increased security due to the hazards inherent in crypto-based ecosystems, and he added:

Virtual asset service providers require the highest quality data and technology to support their compliance programs. Partnering with Binance to provide data and analytic tools is a critical development to address expanding regulatory expectations and mitigate risk.

Notably, the exchange has previously been in hot water with regulators due to allegations that it was unable to register for financial services licenses in a number of nations. However, it appears to have cleared the way for legal clearances.

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