Binance Korea will monitor activity on its platform for signs of money laundering thanks to a solution developed by Coinfirm.
The association, announced on June 1, will help Binance’s Korean office comply with the Anti-Money Laundering (AML) provisions of the International Financial Action Task Force (FATF) travel rules.
Coinfirm offers a blockchain-independent AML platform that is offered to various institutions that do business with cryptocurrencies. Her previous clients include European banks, blockchain projects like XRP and RSK, custodians like Xapo and the Government of Gibraltar.
As Cointelegraph previously reported, Binance already integrated Coinfirm’s solution on its main platform in October. However, Binance’s core platform generally has a minimal compliance burden, and the exchange prefers to open separate offices in countries like the United States, where this approach may not work.
What is changing in Korea?
This is the first time Coinfirm’s compliance solution has been used on a national Binance platform, less than two months after the platform was launched.
Korea has adopted a strict regulatory approach to cryptocurrencies. A recent report suggests that the country’s financial guard has been concerned about cryptocurrency money laundering since 2017, leading to his tough stance the following year.
The country was also one of the most enthusiastic users of the FATF guidelines, which led directly to multiple coin removals on Korean exchanges.
The country introduced a bill in March to grant operating permits to cryptocurrency exchanges. Binance’s competitor, Bithumb, has already integrated a similar compliance solution in response to the law.
It is unclear how the end users of the exchange will feel about integrating Coinfirm. Grant Blaisdell, co-founder of Coinfirm, told Cointelegraph that the suite enables real-time monitoring that can be used as a basis for blocking certain funds, such as hacks. In conclusion, he added:
“Ultimately, it’s up to the Binance compliance team to do what they do with the data and results they deliver.”
It is worth noting that Binance Singapore previously blocked a user account from using CoinJoin’s privacy protocol before making the deposit. This was motivated by the country’s strict AML regulations, which considered CoinJoin a risk factor.