Nov 1, 2024
6thTrade
On October 31, Binance announced a major partnership with Amazon Web Services (AWS) to use Amazon’s advanced generative AI to streamline its Know Your Customer (KYC) processes and improve how the platform handles customer requests.
According to Binance, this AI-powered system will now auto-fill user details, verify proof-of-address, and speed up checks against World-Check, a global compliance database. The improvements are impressive: Binance reports that the new setup has achieved a 95% accuracy rate in recognizing user data, reduced OCR costs by 80%, improved proof-of-address approvals across 107 countries by 6%, and shaved 30% off the time needed to screen against World-Check.
Rohit Wad, Binance’s Chief Technology Officer, hinted that this is just the beginning. “We plan to extend our use of AWS’ generative AI technologies and cloud services across various domains, including customer service, compliance, and risk management,” Wad said, underscoring Binance's commitment to expanding AI’s role in its operations.
Binance Founder Sees a Shift in Regulatory Attitudes
Binance’s partnership with AWS comes at a pivotal time as the world’s largest crypto exchange boosts its compliance efforts to keep pace with evolving regulations. Founder Changpeng Zhao (CZ), who stepped down as CEO last November, believes the regulatory climate for crypto is “moving in a very positive direction”—especially in the United States. CZ pointed to recent comments by former President Donald Trump at the 2024 Bitcoin Conference in Nashville as a signal that support for crypto might be gaining traction. Additionally, Zhao noted an increase in bipartisan backing for crypto among U.S. lawmakers, sparking hope for a more supportive regulatory environment.
Binance’s optimism isn’t limited to the U.S. Recently, Nigerian authorities released Binance executive Tigran Gambaryan from custody after holding him for seven months over alleged money laundering and tax violations. Starting in June 2024, prosecutors began dropping some of the charges, eventually dismissing all remaining allegations by October 23. The release underscores a potential shift in regulatory attitudes worldwide as more authorities navigate how best to handle the evolving crypto landscape.
With Binance’s new AI initiatives and positive signs from regulators, the company seems poised to tackle both compliance challenges and customer demands with a fresh approach.