The leading crypto exchange in the world, Binance announced that it would be partnering with Liquid for its identity verification services associated with its Japanese platform.
The biometrics firm has its headquarters located in Tokyo, Japan, and its services would help Binance in remaining compliant with the strict know-your-customer (KYC) regulations applicable in Japan.
The partnership
Binance has set up a new domestic platform for catering to its clients in Japan and the largest global exchange in terms of users and trading volume, will partner with a Japanese company for doing so.
Since identity verification is required to operate in the country, Binance has chosen to partner with Liquid for this purpose.
According to Liquid, this partnership would involve providing the crypto exchange with eKYC services. The company specializes in big data and image analysis associated with biometrics.
It explained that the eKYC services of Liquid comprise of the top facial authentication services via the company’s unique capability of AI-based image processing.
This ensures a smooth identification process according to the respective security and legal framework of every country.
KYC
Takeshi Chino, General Manager for Binance Japan, highlighted that the robust KYC framework of the exchange plays a vital role in protecting its community, users, and the platform itself.
In addition, he also emphasized that it can also protect the whole crypto ecosystem from numerous threats.
He went on to say that they were looking forward to introducing their Japanese platform that would be fully compliant, thanks to the comprehensive and stringent eKYC solutions that Liquid can offer.
This would enable the crypto exchange to maintain a high standard of compliance and safety when offering its services in Japan.
Hiroki Hasegawa, the chief executive of Liquid, said on Thursday that the eKYC product of the company was being used across a number of industries.
The particular product has gained recognition because it uses ID document image recognition and facial recognition technologies.
The CEO said that they were pleased to offer their services to companies that would help them in catering to more users in a compliant and safe manner.
Regulatory pressure
This move comes at a time for Binance when the leading crypto exchange has been facing a great deal of regulatory pressure all over the globe in the last couple of months.
Japanese regulators had also issued warnings to the crypto exchange about operating without obtaining the required authorizations.
This prompted the crypto behemoth to purchase the Sakura Exchange Bitcoin (SEBC), which is based in Japan, last year in November.
The company also announced back in May this year that its Japanese subsidiary would become fully compliant with local regulations.
It also added that all Japanese users on its global platform would be able to switch to its new domestic platform once they meet the identity verification requirements.
The founder and CEO of Binance, Changpeng Zhao (CZ) said in late July that full services will be available to Japanese users from August 1st. A total of 34 coins are listed on the Japanese platform.