Binance said it is using crypto intelligence firm CipherTrace’s “Traveler” product to help it comply 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; in May, it tapped the company's transaction tracking software to detect hacks and exploits of decentralized finance (DeFi) applications on Binance Smart Chain.
- The latest announcement comes as Binance faces a cluster of regulatory challenges from financial watchdogs in different markets, including Japan, the U.K. and Canada.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.