On August 31, 2016, Coinfirm and Billon announced a partnership to make blockchain transactions more in-line with Anti-Money Laundering laws (AML), helping companies that deal with blockchains to better comply with the law.
Blockchains Better Complying with Regulations
The two blockchain-focused companies have joined forces in an attempt to bring digital currency and blockchain transactions into the institutional and mass market.
According to the press release about the partnership, the biggest challenges businesses and other commercial entities face with blockchain-based transactions and digital currency integration has been regulatory compliance and fraud risk.
Coinfirm specializes in “Compliance as a Service” for blockchain, with the first product on their platform providing solutions for AML and compliance.
Billon, which bills itself as the “world’s first blockchain that enables government currency transactions that is compliant with regulations,” is a blockchain-based payment platform with products like Quikpay or Billon.me, services that have already been adopted in the market by companies such as Amazon’s Twitch.tv.
Together, Coinfirm and Billon will implement compliance solutions for blockchains and digital currency payments.
Pawel Kuskowski, CEO and Co-Founder of Coinfirm, thinks the partnership comes at a decisive time where many businesses are actively experimenting with blockchain tech:
“It’s a vital time and a great opportunity for Coinfirm and Billon to come together. Not only to address compliance issues across blockchain transactions, but also provide a complete package that would allow any financial institution, company, or individual to safely and effectively adopt blockchain based transactions and payment systems. One is an innovator in Blockchain payments and the other is an innovator in the analysis and compliance of blockchain transactions so it creates a powerful combo to push that progress.”
Coinfirm and Billon Tackling AML and CTF
This partnership follows new regulations that are impacting fintech and digital currency companies, such as the EU’s Anti-Money Laundering Directive that will apply new due-diligence controls and attempt the deanonymize cryptocurrency exchanges.
Counter Terrorist Financing (CTF) and Anti-Money Laundering (AML) have been of particular focus with these new directives, and according to the press release, addressing these activities is crucial for the development of digital currencies and financial blockchain solutions.
Compliance is a difficult and costly process to implement, especially with blockchain and digital currencies which are often designed with some degree of anonymity intended, but Coinfirm believes by making blockchains more compliant that they will make it more appealing to businesses at-large.
The combination of the compliance platform brought by Coinfirm and Billon’s specialized blockchain can help eliminate the significant costs that many entities dedicate towards compliance. Financial institutions can spend up to 25% of their labor costs on it while some major digital currency companies have admitted to dedicating 20% of their workforce towards compliance.
Together, Coinfirm and Billon can provide compliant solutions that allow banks, financial institutions and companies to more easily adopt blockchain and digital currencies into their business models without having to worry about whether or not they’re complying with financial laws,
What do you think of the partnership between Coinfirm and Billon? Let us know in the comments below!
Images Courtesy of Billon, Coinfirm, rebe.dvrlists.com.