Binance Deploys CipherTrace Tool for Travel Rule Compliance
1 Jul, 2021•1 min read•Regulation
Binance said it is using crypto intelligence firm CipherTrace’s “Traveler” to aid compliance with global “travel rule” regulations.
Traveler will help Binance detect bad actors on the exchange's platform, an announcement Thursday said. CipherTrace released the tool in March to help tackle hacks and fraud by scanning addresses associated with incoming crypto transactions. The Financial Crimes Enforcement Network and Financial Action Task Force's "travel rule" regulations require virtual asset service providers to exchange identifying information when conducting transactions. Binance's relationship with CipherTrace is well established, and in May it tapped the company's transaction tracking software to tackle hacks and exploits of DeFi applications on Binance Smart Chain. This announcement comes as Binance faces a cluster of regulatory challenges from financial watchdogs in different markets: Japan, U.K. and Canada.