On March 12, Koi Trading — which is a company that offers an OTC trading desk and has received significant investment from leading cryptocurrency exchange Binance — announced that it had released what it calls an anti-money laundering compliance-as-a-service product. It has done this in partnership with a company called IdentityMind, which provides an online risk management platform that currently supports more than 35 cryptocurrency exchanges across the world. The product is being called Koi Compliance, and it supports money service businesses that use digital currencies. The plug-and-play product will let companies operating in the sector to focus on running their businesses while it takes care of know-your-customer regulations and processes. The product will also maintain proper records, perform necessary sanction screening and regulatory reporting as well as monitor transactions. Kieran Sherlock, who is the CTO of IdentityMind, issued a statement in conjunction with the announcement, stating that the two firms had created a new way for digital currency companies to become compliant with regulatory requirements from day one and thereby limit regulatory risk. In November of last year, Binance Labs, which is an investment subsidiary of the Binance exchange, provided Koi Trading with $3 million in financing. At the time, it was reported that the investment was made so that Binance could utilize Koi's expertize in compliance consulting services, data science and quantitative research. It was also reported last November that Binance would be using an application developed by a financial software company called Refinitiv to perform automated know-your-customer compliance. This let Binance integrate Refinitiv's World-Check Risk Intelligence database into their own applications and helped it streamline a variety of screening processes at the company, such as know-your-customer compliance, third-party risk due diligence and onboarding. Earlier this year, TRM, which is a blockchain compliance company, announced that it had developed what it called a token relationship management platform. This platform lets cryptocurrency-related businesses streamline their anti-money laundering compliance procedures. The company recently received $1.7 million in funding, which was led by a U.S.-based investment company called Blockchain Capital.
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