Bitcoin Forum

This might only be the beginning. Over the next years, I reckon we will witness much of the other exchanges might also begin using Ciphertrace and they might also delist anonymous coins. The cryptospace will not be the same. It will be a privacy invading space where regulators and the authorities trace and scan your every transaction.



Binance has announced that it has deployed a commercial solution called CipherTrace Traveler to achieve compliance with FinCEN (Financial Crimes Enforcement Network) and FATF (Financial Action Task Force’s) travel rule regulations.

This makes Binance the first crypto exchange to deploy Traveler, which was released in March. The solution automatically scans addresses associated with incoming cryptocurrency transactions, verifying the originating VASP and recipient VASP to each other.

Binance’s announcement of Traveler’s deployment comes amid regulatory pressure from the FCA (Financial Conduct Authority), which has issued a consumer warning saying Binance Markets Limited, the UK unit of Binance, is not permitted to undertake any regulated activity in the UK without the prior written consent of the regulator.

Source https://www.regulationasia.com/binance-deploys-new-aml-solution-amid-regulatory-pressure/

Binance aims to be another nasdaq. Fully regulated all in one exchange. They have crypto, crypto futures, options and even Stock Tokens product slowly adding more and more stocks. They are hiring ex regulators:

Cryptocurrency Giant Binance.US Hires Former Top Bank Regulator (https://www.wsj.com/articles/cryptocurrency-giant-binance-hires-former-top-bank-regulator-11618912800)
Binance Hires Former US Senator Max Baucus (https://www.binance.com/en/blog/421499824684901776/binance-hires-former-us-senator-max-baucus-as-policy-and-government-relations-advisor)

Its not surprising at all that they do all they can to trade and sort out and block all crime activities - without that they won't achieve their goals.

But no worries. There will always be a lot of alternatives. Question is ... how many people will want to use risky, small, shady exchanges rather than fully regulated, safe exchange.

They will until one day that shady exchange went on an exit scam, people are going to take the risk just to avoid, Binance strict rules now.

The question is, if Binance is spear heading this campaign, will other top tier exchanges follow suit? I'm sure it will take a lot of heat from most traders because of the new "solution", thus really affecting everyone here.

Binance has become a very large platform and a very impressive amount of money passes on it every day and does anyone else believe that all this can happen anonymously and without regulatory intervention? Everyone is just talking about the adoption of crypto in the world, so it turns out that in order to achieve this goal, you need to make concessions from regulators, otherwise for many exchanges, including Binance, activities in a particular country will be limited. The world is ruled by money and no one wants to miss the opportunity to regulate large financial markets, or even manage them in their own interests.

binance will do anything to make users continue to use them system, as long as they can. they will provide users data and hand it over to the authorities if it makes a profit for them.

Therefore, they do not care about user data or even compliance with the laws as much as making profits.

I expect binance to try as much as possible to avoid forcing all users to verify identity in exchange for handing over all data and setting low limits for trading.

I dont have issues with regulations, If the coins i receive is clean and came from legit sources i dont have anything to worry about. My top choice when it comes to trading, P2P trade and withdrawal to my bank account is always binance.

That's why Binance are doing their best to find any fraud and do the necessary actions to protect their own reputation, this is how great Binance is and it's good that they are going to deploy a new AML solution. That regulations pressure is normal on a bear market, sooner or later they'll accept cryptocurrency and Binance will be the top choice when it comes to exchanges for more years to come, they are still growing.

Is it just about using available data on transactions and organizing it to trace where money comes from and goes? In this case, I don't see a problem here. Or are people required to suit additional data, which makes them easier to identify and track?
In any case, I think Binance just wants the authorities everywhere to be happy, while also not losing their clients. And it's not a surprise that they are introducing new AML measures. Will it help them with becoming legal in the UK, though?

When a big business like Binance is under the pressure coming from regulatory authorities, it will have no choice but to bend over and follow the rules. The same thing happened with Coinbase. The main thing is that if you are doing business, you need to comply otherwise there can be no other choice but to close shop. We are going into the era of regulations and of course many crypto enthusiast would not want it that way because they can be thinking that getting into crypto means avoiding the influence and big eye of the government. In other words, this can be a situation of "damned if you do" and "damn if you don't" and I know what the clear choice for Binance is going to be. And it is starting right now.

However, when you trade peer to peer, you do not know where your trading partner’s coin’s came from. So if you deposit them to Binance, Ciphertrace might flag them as dirty. This gives Binance the right to lock your account.

This was bound to happen sooner than later. Binance has recently been under huge regulatory pressure across the globe. From the UK all the way Thailand. The regulators want Binance's blood. For this reason I personally wouldn't leave substantial amount of coins on Binance.

They won't go bankrupt just because of these regulators are going after them. They're trying to work with them but at the expense of their users. Are you are afraid that Binance will provide regulators more information about you? If so, why do you even use a centralized exchange?