Coon works with CipherTrace, an anti-money laundering company

Binance, the world's third-largest cryptocurrency exchange, has announced it has teamed up with blockchain analytics company CipherTrace.

According to the statement, the partnership aims to strengthen the company's regulatory compliance by strengthening anti-money laundering (AML) measures. CipherTrace also provides services to regulators, financial institutions and auditors, the post said. Cointelegraph reported in March that it had been appointed by the Malta Financial Services Authority to monitor the activities of Malta's encryption companies.

CipherTrace, which provides services such as blockchain data analysis, security consultancy, anti-money laundering and compliance solutions, has been tracking bitcoin-related criminal activity since 2011. In late January 2019, CipherTrace released a report saying that about $1.7 billion of cryptocurrency had been obtained illegally in 2018, of which more than $950 million had been stolen from encrypted exchanges, a 3.6 times increase from 2017.

CipherTrace raised $15 million in February, led by Aspect Ventures, Galaxy Digital, Neotribe Ventures and WestWave Capital.

Binance CCO of Samuel Lim said: "choose CipherTrace as our chain security solutions that will strengthen our expansion momentum, and the user, between regulators and financial institutions to establish greater trust. This cooperation will strengthen our existing world-class anti-money laundering compliance program, and help us to open up new markets in the form of the compliance."

That's not to say that other KYC/AML compliance companies, such as Refinitiv, Chain or IdentityMind, are unqualified. All of these companies have formed some kind of partnership with Binance over the past six months.

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