Binance Custody taps TRM Labs for regulatory compliance and risk management

Rick Steves

“As an institutional custodian, our utmost priority is to provide secure and compliant services that our clients can trust. Utilizing TRM’s compliance and risk management solutions strengthens our suite of secure custody solutions to help clients safely participate in this rapidly growing digital economy.”

binance

Binance Custody has deployed the risk management tools from TRM Labs in order to ensure its regulatory compliance and risk management program for client holdings.

Binance Custody is the institutional-grade digital asset custody solution offered by the world’s largest cryptocurrency exchange, Binance, and was launched in December 2021.

The crypto custodian has already secured its specie insurance, ISO 27001 & ISO 27701 certifications and SOC 2 Type 1 attestation, and is currently pursuing its SOC 2 Type 2 attestation.

The certifications ensure the platform offers high security and integrated access to deep institutional liquidity venues with compliant, insured, and audited technology solutions.

Binance Custody was launched to address concerns that security and custodial services remain a significant hurdle to broader institutional participation in the space.

The partnership with TRM Labs will only reinforce its position within the digital asset space.

Suite of compliance and risk mitigation tools

Binance Custody will leverage TRM to better manage regulatory and reputational risk related to digital assets by accessing its asset coverage, risk assessment, and forensics technology capabilities.

Athena Yu, EVP of Binance Custody, commented: “As an institutional custodian, our utmost priority is to provide secure and compliant services that our clients can trust. Utilizing TRM’s compliance and risk management solutions strengthens our suite of secure custody solutions to help clients safely participate in this rapidly growing digital economy.”

Binance Custody uses TRM to screen for high-risk wallets, and monitor and investigate suspicious transactions. The suite of tools complies with AML/CFT regulatory requirements and manages exposure to risks such as sanctions, hacked or stolen funds and terrorist financing.

The TRM tool suite includes:

  • Transaction Monitoring: Real-time risk scoring of cryptocurrency transactions for AML compliance, sometimes known as Know-Your-Transaction or KYT.
  • Wallet Screening: Proactive screening of cryptocurrency addresses for sanctions and AML compliance.
  • VASP Due Diligence: Comprehensive on-chain risk profiles of “Virtual Asset Service Providers” (VASPs) and other digital asset businesses.
  • Forensics: Investigative tools to trace the source and destination of funds and link high-risk addresses to real-world entities.

Esteban Castaño, co-founder and CEO of TRM Labs, said: “As mainstream adoption of digital assets progresses, it is vital that institutions have compliance peace-of-mind when choosing partners such as custody service providers. By incorporating TRM’s suite of compliance and risk mitigation tools, Binance Custody reinforces its ambition to deliver innovative services with trust and safety at the forefront.”

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<