- Binance has made a progressive move toward compliance.
- The exchange joined a global compliance alliance.
- The move will see the exchange collaborate with “compliance-focused” industry leaders.
The world’s largest crypto exchange by trading volume, Binance, has officially joined the Global Travel Rule (GTR) Alliance to “advance interoperable compliance,” the company said on Tuesday.
GTR is a global community of crypto service providers that utilizes the same solution to comply with key international anti-money laundering (AML) rules proposed by the Financial Action Task Force (FATF).
Binance Embraces FATF’s “Travel Rule” Regulation
In an announcement dated March 26, Binance revealed that it joined the GTR Alliance in a strategic move designed to keep the exchange in alignment with the FATF Recommendation 16, a reporting requirement known as the “Travel Rule.”
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Terming it an exciting step forward in solidifying international compliance efforts, Binance’s Deputy Chief Compliance Officer, Steve Christie, said the move is instrumental in helping the exchange overcome the challenge of fragmented regional integrations.
“This move doesn't just bring us into alignment with FATF's global standards – it's about proactively providing our extensive user base with the assurance that their data and transactions are secure. This alliance amplifies the trust, security, and transparency that our users can expect at Binance,” Christie stated.
According to the statement, joining the GTR alliance allows Binance to collaborate closely with other compliance-focused industry leaders in the group, including CODE, Sygna, and Sumsub. CODE constitutes a group of South Korean crypto exchanges Bithumb, Coinone, and Korbit.
Besides fostering compliance with international regulations, the move allows Binance to tap into top-notch data security tech offered to virtual asset service providers by the alliance. This includes a solution that safeguards transaction validation by applying Keccak256 encryption to all Personal Identifiable Information (PII).
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