Official: Binance Chain and BNB Will Be Traceable via CipherTrace

American blockchain security firm CipherTrace will provide Anti-Money Laundering controls for Binance Chain and its native asset Binance Coin.CipherTrace to increase AML checks on Binance Chain.

Binance Chain, a public blockchain of major crypto exchange Binance and the underlying blockchain for Binance DEX, is expected to improve its AML procedures through CipherTrace, Binance announced on Nov. 5.

Specifically, CipherTrace will be providing Binance Chain with institutional-grade AML controls to increase adoption of the Binance Chain blockchain.

Within the initiative, CipherTrace will enable global developers, investors and regulators to access the Binance Chain blockchain for discovering data such as high-risk addresses.

CipherTrace will be helping those entities to set various controls to protect decentralized applications, exchanges or other crypto-based applications, Binance wrote in its blog post.

Customer data will not be shared with third parties, Binance COO says.

Samuel Lim, chief compliance officer at Binance, claimed that the initiative will not affect Binance users' security and data protection.

"Users can rest assured that Binance will uphold its usual high standards of user security and data protection."

In the announcement, Lim considered the move as a "Major win for the community-driven Binance Chain," noting that Binance users can soon expect more digital token support across its ecosystem.

CipherTrace's support for BNB and Binance Chain follows the recent expansion of CipherTrace services to up to 700 cryptocurrencies including Ether, Tether, Bitcoin Cash and Litecoin on Oct. 15.