Malta-based digital asset exchange Binance has partnered with CipherTrace, a San Francisco-based firm that develops cryptocurrency anti-money laundering (AML) and blockchain “threat intelligence” solutions.
The partnership between the two companies involves building security infrastructure that will raise Binance’s “compliance standards in line with a worldwide progression of cryptocurrency regulations and developing frameworks.” This, according to a press release shared with CryptoGlobe which also noted that CipherTrace has been helping “regulators, financial institutions, and auditors” throughout the world in improving their platform security.
Assessing And Monitoring Potential Risks
Commenting on the initiative, Samuel Lim, Chief Compliance Officer at Binance, remarked:
The selection of CipherTrace as our on-chain security solution will augment our expansion drive and build greater trust among our users, regulators and financial institutions. This partnership will bolster our existing world-class AML compliance program and help us expand into new markets in the most compliant fashion.
Meanwhile, Dave Jevans, the CEO at CipherTrace, said:
As one of the most trusted cryptocurrency exchanges on the globe, Binance is leading the way in AML compliance programs for the industry.
Jevans added that Malta is the “world’s most progressive jurisdiction” when it comes to adopting a regulatory framework that “encourages innovation.” In order to help Binance further improve its existing exchange security, CipherTrace will “assess and monitor [potential] risks” on its trading platform, Jevans noted.
He also stated:
We are looking forward to helping the crypto economy grow by raising the level of transparency and trust in the overall market. We expect many others to follow Binance’s lead and are excited to help pave the path.
CipherTrace, An $18 Million Cybersecurity Startup
Founded in May 2015, CipherTrace creates solutions for “cryptocurrency AML, cryptocurrency forensics, blockchain threat intelligence and regulatory monitoring” procedures. It has business offices in Menlo Park, California and has received $18 million in total funding (to date).
Notably, CipherTrace is currently working with other “leading [cryptoasset] exchanges, banks, investigators, regulators and digital asset businesses,” in order to help them “trace transaction flows and comply with regulatory AML requirements.” This, according to CipherTrace, helps in “fostering trust in the cryptocurrency economy.”
It appears not only that digital asset exchanges are investing in implementing improved security infrastructure for their platforms, but even developers of cryptocurrency platforms have also started partnering with cybersecurity firms in order to secure their networks.
EOS And Ontology Take Measure To Improve Blockchain, Smart Contract Security
On April 11th, 2019, SlowMist, a leading online security company, revealed it was working with the developers of EOS to help the decentralized application (dApp) deployment platform make its smart contracts more secure.
The creators of Ontology (ONT), a “distributed trust” network for building dApps, have also taken measures to enhance their platform’s security by launching VaaS-ONT, the world’s first “customized formal verification” system. This, according to the Ontology team, will help improve blockchain and smart contract security on the dApp creation platform.