With cryptocurrencies slowly gaining momentum and going mainstream, it has become important for key industry participants in the crypto space to make sure that crypto transactions are not being used for illicit activities. Hence, a strong KYC is crucial, especially for platforms that handle fiat-to-crypto services as they have the ability to prevent the flow of illicit funds into their systems.
The increased trust and security that comes with KYC would help mainstream audiences become more comfortable buying crypto and facilitate use cases, including payments.
Binance has among the strongest AML and KYC policies within the industry. The company has implemented a KYC requirement for all its users to be ‘Verified’ before being able to access Binance products and service offerings. This is part of Binance’s ongoing efforts to strengthen user protection, risk management protocols, and overall security.
Stronger KYC for better services
Some of the major benefits of the new KYC system put in place on Binance towards strengthening user protection include:
- Creating a more secure trading environment: Identity verification acts as a deterrent against people who would try to use the exchange for money laundering and other illegal activities. This creates an initial barrier that reduces the risks that bad actors expose other users onto.
- Global compliance and trust: One of the most important aspects of KYC and AML apart from regulatory compliance pertains to the trust and assurance that crypto exchanges can operate safely on a global level. Greater crypto adoption and use case exploration is possible with the help of new products and services that help grow freedom of money.
- Enhanced reputation: Binance aims to focus not only on making the platform more secure for users but also on working with regulators and institutions around the world. With enhanced KYC processes, it will facilitate a smoother onboarding process and relationship with banks, payment providers, and other partners in the wider financial sector.
Building a robust compliance program
Binance has strived to build a robust compliance program that incorporates anti-money laundering principles and tools that are used by financial institutions in order to detect and deal with suspicious activities.
The platform has also adopted a risk-based approach in implementing its AML/CFT compliance program that includes a robust KYC process used to identify users before providing fiat services. Customer risk assessments are also performed by taking into consideration customer risk factors such as PEP status, sanctions nexus, adverse media exposure, and geographical risks like nationality and country of residence.
Binance also works with a wide range of third-party compliance vendors aimed at the prevention and detection of money laundering and countering of terrorism financing.
Key partnerships around the world
With strong compliance practices, Binance meets the requirements of regulated entities around the world entering into key partnerships that serve their users and encourage the adoption of cryptocurrencies and blockchain technology.
In Europe, Binance has achieved milestones and achievements that demonstrate its commitment to compliance. Binance has been granted registration as a Digital Asset Service provider by the French regulatory authorities. It has also been given a Virtual Asset Provider registration in Italy.
Similarly, Binance’s commitment to being a compliant-first exchange has been met with regulatory approvals in the Middle East. In Dubai, it has been granted a Virtual Asset License from the Virtual Asset Regulatory Authority Meanwhile, in Bahrain, Binance has received a Category 4 license as a crypto-asset service provider by the Central Bank of Bahrain. It has also received in-principle approval for a Financial Services Permission from the Abu Dhabi Global Market.
Binance’s commitment to its user-first approach has driven the platform to implement strong KYC and AML policies. This enables the platform to enhance security and increase opportunities that come with wider crypto adoption.
For more information on Binance, please check out their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.
Source: https://ambcrypto.com/binance-sets-high-standards-for-aml-and-kyc-with-their-user-first-approach/