Binance, one of the most popular cryptocurrency exchanges, has announced the launch of Traveler, a technology that will assist them in complying with the Financial Action Task Force’s Travel Rule (FATF). CipherTrace, a blockchain analytics company, developed Traveler as a third-party compliance tool.
According to CipherTrace, Traveler automates the process of complying with the FATF rule. It makes this possible by making connections and detecting different VASPs automatically (Virtual Asset Service Providers). By deploying it, exchanges reduce their due diligence load.
As a result of this agreement, Binance will be able to promptly detect and identify money launderers. The exchange’s Chief Compliance Officer, Samuel Lim, explained, “We are proud to partner with Ciphertrace to deploy Traveler compliance solution. As always, we are committed to providing a superior product for our users. One that is secure, decentralized, and meets global compliance standards.” CipherTrace’s CEO, Dave Jevans, emphasised, “We are confident that Traveler will help Binance to continue to meet the highest standards for global Anti-Money Laundering compliance.”
This type of instrument would placate regulators who are now actively scrutinising crypto exchange. Binance received a series of warnings from regulators in a number of countries before making this announcement. The FSA, a Japanese cryptocurrency regulator, has issued a warning against Binance. According to Japanese officials, the business has not registered to provide cryptocurrency trading services. Similarly, UK regulators issued a similar warning, noting that Binance lacked a licence to operate in the nation. Binance ceased operations in Ontario when the Ontario Securities Commission determined that Binance was engaging in unlicensed security trading.
Binance’s creator and CEO, Changpeng Zhao, has often asserted that the exchange has no headquarters since “it is like Bitcoin.” Therefore, its exact location has remained a mystery, with some speculating that it may be based in the Cayman Islands.