On Oct. 31, Binance revealed a partnership with Amazon Web Services (AWS) to leverage Amazon’s generative artificial intelligence to streamline the Know Your Customer (KYC) verification process and handle service requests on the Binance platform.
According to the announcement, the new KYC system auto-fills user information, performs proof-of-address checks, and makes screening against World-Check reviews more efficient.
Binance claims the new AI integration increased recognition rates for user data to 95%, reduced the costs for optical character recognition by 80%, increased proof-of-address approval rates across 107 jurisdictions by 6%, and decreased the time spent to screen against the World-Check KYC database by 30%.
Rohit Wad, Binance’s chief technology officer, hinted that the exchange would also expand its use of Amazon’s web services in the future. Wad stated: “[W]e plan to extend our use of AWS’ generative AI technologies and cloud services across various domains, including customer service, compliance, and risk management.”
Related: Web3 momentum accelerates at Binance Blockchain Week 2024 in Dubai
Binance founder senses shift change in regulatory climate
The world’s largest exchange continues to boost compliance measures amid a hostile regulatory climate. However, Binance founder Changpeng Zhao believes that the regulatory stance toward crypto is changing for the better — particularly in the United States.
Zhao speaking at Binance Blockchain Week in Dubai. Source: Binance
Zhao, who stepped down as Binance CEO last November, stated that cryptocurrency regulations are “Moving in a very positive direction.” He cited recent comments made by former President Donald Trump at the 2024 Bitcoin conference, in Nashville, Tennessee, as reasons to be optimistic about the future of crypto.
Zhao also noted the growing bipartisan support for crypto among US lawmakers as another cause for optimism.
Evidence of this regulatory shift could also be found in the recent decision by Nigerian authorities to release Binance executive Tigran Gambaryan from custody after approximately seven months.
Nigerian officials arrested the Binance executive unexpectedly in February 2024 and accused him of violating money laundering laws and facilitating tax evasion.
Prosecutors for the country started dropping some charges against Gambaryan in June 2024 and dropped the remaining money laundering charges against him on Oct. 23.
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