In brief
- Binance is trying to comply with anti-money laundering regulations.
- It is now using the services of Shyft Network.
- But Binance is already working with Coinfirm on the same issue.
Crypto exchange Binance has partnered with Shyft Network to help it comply with regulators.
Shyft Network is a protocol that transfers information between permissioned and permissionless blockchain networks.
Binance’s chief compliance officer, Samuel Lim, said, “Until now, the industry has not had an existing infrastructure for VASPs to coordinate and comply with the FATF’s new guidelines. Shyft Network’s solution enables VASPs to fully comply with the Travel Rule.”
The partnership is designed to mitigate a problem posed by an anti-money laundering regulation called the “travel rule”—which the Financial Action Task Force (FATF) has recently said applies to cryptocurrency.
FATF sets the world’s standards for anti-money laundering policies. It said in June that crypto payments processors, like crypto exchanges, (like Binance), have to collect customer information when processing transactions, and send that data off to a recipient organization. It’s designed to help catch criminals moving money around illegally.
However, Binance is already working with a company designated for this kind of compliance. Earlier this month, security firm Coinfirm told Decrypt it was working with Binance to help deal with the travel rule.
Binance did not respond to Decrypt’s requests for comments on whether it will be using both firms to help with this issue.