Binance Partners with Chainalysis to Stamp Out Money-Laundering

In a bid to tackle the age-old assertion Binance has joined with crypto compliance and investigation provider Chainalysis to keep its transcontinental ecosystem squeaky clean.

The new tie-up revealed in a press release Wednesday is a joint effort to tackle "Global cryptocurrency money-laundering", and break down the barriers found at the "Intersection of cryptocurrencies, regulators, and traditional financial institutions."

Backed by Wall Street investment banking heavyweight, Benchmark, Chainalysis in April secured $16 million in VC funding in a mounting push to further its coverage to government entities, cryptocurrency businesses and financial institutions, worldwide - whom the company currently claims to serve more than 150 of, globally.

With offices in New York, Washington DC, and Copenhagen, Chainalysis would presumably be no stranger to the sheer height of some regulatory hurdles.

"Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users, We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions."

The new partnership sings in harmony with the ambitions of Binance CEO Changpeng Zhao, who in September stated his curveball intention to set up five to ten fiat-to-crypto exchanges in nearly every continent - giving preference to smaller, more collegial, regulatory environments that could work directly with his ever-expanding team.

Now with its global campaign map firmly in hand, Binance would be looking to get a running start with Chainalysis' full suite of tools - which purportedly helps crypto businesses and financial institutions comply with Anti-Money-Laundering and Know-Your-Customer regulations - and companies accepting cryptocurrency to open banks accounts.

The wheels have already been set in motion, with Binance, the world's leading exchange by daily volume, having implemented a complete roll-out of Chainalysis' compliance solution - an algorithmic 'Know Your Transaction' software designed to weed out and sound the alarm on suspicious transactions.

To Binance CFO Wei Zhou, a former Wall Street financial management executive, stomping out any funny business is a surefire prerequisite to global expansion.

Whatever efforts are made to pull the rug out from prospective launderers may do little to diminish the narrative that cryptocurrency is criminal money.