Crypto exchange Binance partners with Chainalysis for compliance

The crypto compliance and investigation software provider will provide access to its “Know Your Transaction” compliance software, enabling the exchange to monitor cryptocurrency transactions in real-time. In particular, the tool will look for potentially criminal or otherwise illicit activity.

Chainalysis system works by using a combination of pattern recognition, proprietary algorithms and different open-source resources to process cryptocurrency services. If suspicious activity is detected during a transaction, the software will generate an alert.

The tool can also help cryptocurrency companies to ease the process of opening bank accounts, due to its compliance with relevant KYC and AML laws, according to the release.