Crypto Crash Won't Hurt World Economy, S&P Says

Leading international rating agency has dismissed fears about cryptocurrency's potential to crash the global financial system
20 February 2018   452

According to analysts of the leading international rating agency S&P Global Ratings, the talks that the possible collapse of the cryptocurrency market could bring down the global financial system is clearly exaggerated and represents "a lot of noise from nothing." This is reported by Business Insider.

As representatives of S&P note, if the price of the currency falls, this event will have a negligible effect on global financial stability.

In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate. If the value of cryptocurrencies dropped substantially, we expect retail investors would endure most of the impact.

Mohamed Damak 
S&P Global Ratings

Regardless of the skeptical attitude towards digital assets, S & P positively assesses the prospects of the underlying bitcoin and other crypto-currency technologies of the distributed registry. Thus, according to Damak, the blockchain can increase the speed and transparency of financial transactions, reduce their cost and even change the principles of the banking system.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   74

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.