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Binance — currently the world’s most popular cryptocurrency exchange has just announced a new partnership with risk management and RegTech compliance platform IdentityMind. This looks to be an attempt to improve its regulatory compliance in order to maintain its edge in the industry.
According to the update, the new partnership was formed with the goal of improving its existing data protection and compliance measures, and also aiming to foster trust with global financial institutions — something many experts believe is crucial for achieving mass adoption.
Commenting on the partnership, Samuel Lim, Chief Compliance Officer of Binance had the following to say:
“We continue to evolve and enhance Once you've bought or received bitcoins; you now need to keep them as safe as possible. This guide will provide... More systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.”
The report acknowledges that due to its size, Binance has struggled with compliance. With IdentityMind now seemingly poised to step in to provide the solutions, Binance needs to continue its rapid expansion.
As of yet, it is not immediately apparent if, or when new KYC policies will be introduced to the Binance trading platform. Despite this, Binance users have already taken to social media to vent their opinions, with some appreciating the company’s interests in user safety, while others apparently cannot wait for the Binance decentralized exchange (DEX) to be released.
Binance Dex release date?
— MuscoloRosso (@CapitanGokkun) March 26, 2019
Binance has been considered by many to be one of the more relaxed exchange platforms in terms of KYC requirements and has found itself the home for many traders looking to trade regularly, with only extremely high volume traders being forced to complete KYC.
In the past, exchange platforms have introduced more stringent KYC policies in the lead-up to unveiling a new suite of products. However, with the Binance platform already one of the most feature-packed exchanges in operations, it begs the question of what could have triggered the move?
One possible answer to the question is simple: fiat deposits and withdrawals. Currently, Binance only allows cryptocurrency deposits and withdrawals, meaning it can avoid the more strict laws that apply to registered money institutions or payments providers. However, with its KYC procedure looking poised for a revamp, it stands to reason that fiat options may be on the way.
[bctt tweet=”Binance looks poised to revamp its KYC policy: Are fiat deposits and withdrawals on the way?” username=”beincrypto”]
Though it is clear that Binance is doing what it sees is for the best of its users and the industry at large, it is inevitable that a portion of its users will feel slighted by this decision — especially since Binance is (was) widely considered to be among the more private popular exchange platforms.
Whatever the case, it is likely that Binance will not be the last platform to make such an announcement, thanks to the EU’s new Fifth Anti-Money Laundering Directive.
How do you think this new partnership will affect the value of BNB? Will investors react favorably? Let us know your thoughts in the comments below!
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