Cryptocurrency exchanges can be very hard to do because of the large amounts of restrictions and not so many trustworthy companies. Binance is the biggest cryptocurrency exchanges by traded volume and is probably the most trustworthy service provider you can work with. This makes them one of the most attractive potential partners for many fintech startups. One of those fintech startups is Chainalysis, which is a software provider for monitoring cryptocurrency transactions. They are currently based in New York.
Chainalysis is quite revolutionary when it comes to identifying frauds and unofficial frequencies. It can detect suspicious patterns in real time and report them immediately. Not only that, but they also have a lovely new feature called KYT (Know your transaction) that helps you track all of your activity with relative ease compared to other providers.
Why such interest in Chainalysis?
The company essentially offers better ways to track the frequencies in trading activities. The law enforcement will be able to quickly react to any scams or fraud taking place and deal with it within hours. For Binance, it is important to have a clean record in order to retain their popularity as one of the most transparent and reliable service providers. Algorithms and millions of open source references are used in the Chainalysis system, that helps the program determine whether or not to report a specific transaction as “suspicious”, raising the accuracy rate for scam detection.
Concerns of cryptocurrency fraud have been a subject of debate in many a government all over the world. The fact that this primarily digital based asset is so easy to tap into, create or just make-up, creates real problems for governments about investor safety. Some of them have opted to completely shun out the asset and never mention it again, due to uncertainty in how to deal with it.
Chainalysis is what all these governments have been looking for and Binance is about to pitch it to them. It is in both of the company’s interests to gain a wider range of potential customer influxes. However, they could be hit with a brick wall as some of these countries are starting to create commissions in order to install at least some types of regulations. If they want to tap into all the potential customer bases then they need to hurry up and convince these politicians.