Binance will tighten KYC Controls and sanctions enforcement

Binance crypto exchange intends to tighten control over the know-your-customer procedure (KYC) in order to minimise risks. The crypto exchange has already signed contracts with screening provider Neterium and data analytics and security company Kharon, which will help to identify illegal activities on the platform.

KYC guidelines are the rules that oblige financial entities to verify the identity of their clients for anti-money laundering purposes. Binance introduced this procedure last year, when the exchange began to actively cooperate with regulators of various countries. For this reason, 3% of its customers preferred to switch to other crypto platforms. But on the other hand, more institutional investors began to use Binance services.

Chagri Poyraz, Binance’s global head of sanctions, noted that Neterium and Kharon provide best-in-class technologies that mitigate reputational and financial risks for the company.

Howard Mendelsohn, Kharon’s Chief Client Officer, said that nowadays digital asset service providers need top-quality technologies, as it is becoming increasingly difficult to meet regulatory requirements. Kharon can provide Binance with the necessary data solutions.

Binance also actively works to obtain licences from regulators in different countries. Last year, the company received a permit in Canada and Bahrain, then in Abu Dhabi and France. Recently, the Italian regulator also allowed the exchange to provide crypto services on its territory.

According to Binance representatives, a new division is evidence that it is important for the company to act in accordance with the law. The licence allows the exchange to open official offices in Italy and hire more employees.

Binance CEO Changpeng Zhao believes that clear and effective regulation is necessary for the widespread availability of digital currencies. He also noted that the exchange always puts its customers first and does its utmost to ensure their safety.