Binance will report user transactions to other exchanges

Bitcoin (BTC) and other cryptocurrencies exchange, Binance, announced the implementation of CipherTrace Traveler, a tool created for compliance with the travel rule, recommended by the Financial Action Task Force (FATF). With it, they will create reports on the issuance and receipt information of users who make transactions between exchanges.

In a statement, Binance’s chief compliance officer Samuel Lim indicated that the intention is provide a “superior” product for your users, “that is secure, decentralized and meets global compliance standards.” This is in order to meet increasing regulatory pressure from state agencies.

It is worth remembering that the FATF, is a group dedicated to the fight against money laundering and the financing of terrorism on a global scale. The so-called” travel rule ” is a regulation that must be adopted by service providers with virtual assets, including exchanges. The goal is to share information among them, about those users to make trades in excess of $ 1,000, as reported by CriptoNoticias.

To comply with that rule, Binance will implement CipherTrace Traveler, a solution designed to facilitate compliance among virtual asset service providers (VASP), including cryptocurrency exchanges. In this sense, the text indicates that with Traveler you can detect funds derived from illicit activities, so that Binance can take the corresponding actions.

What information does Traveler report?

Traveler facilitates the reporting of various transaction data between different providers of virtual assets, which not only includes exchanges, but custodians, exchange tables outside the counter( OTC), banks and, if the update of the FATF regulations is approved, could include even Decentralized Finance Tools (DeFi).

Among the information that Traveler would share, is the name, address or identity number, identity of the financial institution, account number (both issuer and recipient), as well as the amount sent and the day of execution, as well as any other specific data about the recipient.

Traveler meets the regulatory requirements set by the FATF. Source: CipherTrace.

CipherTrace CEO Dave Jevans said, ” Traveler will help Binance continue to meet the highest standards of global anti-money laundering compliance, especially as VASP regulation becomes more stringent in jurisdictions around the world.”

Binance suffers a misstep in the UK

In recent days, Binance has faced limitations to trade certain products in the UK, so implementing the travel rule, suggests that you want to avoid problems with international regulators.

On June 26, this media reported that the financial control body of the United Kingdom, known as Financial Conduct Authority (FCA) banned Binance Markets Limited carry out any financial activity that requires regulation in the country, without your authorization.

The exchange’s response was not long in coming and they assured that they would adopt a “collaborative approach” to work based on that country’s legislation.

FATF goes against Bitcoin privacy

The FATF travel rule is a regulation that has caused a stir in the bitcoiner community for its effect on users ‘ privacy.

Organizations like Coin Center, which advocate for users ‘ rights over open blockchain networks, have rejected the FATF rule regarding the use of Bitcoin, cryptocurrencies, and service providers that enable P2P exchanges, for being a problem for ” privacy and innovation”, as reported by CriptoNoticias.

On the other hand, according to the opinion of a certain sector of the bitcoiner community, the anti-money laundering measures, proposed by the FATF, have resulted in very high costs in terms of financial exclusion, commercial friction, bureaucracy and regulatory adequacy, violation of privacy and others.

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