Crypto.com, Independent Reserve in top 5 for strong AML; Binance places 42nd

Familiar names in Singapore landed in the top five of a list featuring crypto exchanges with strong anti-money laundering (AML) systems.

Blockchain.com and Independent Reserve, which are both licensed to operate in Singapore, ranked first and third place respectively. Crypto.com, which has in-principle approval, placed fifth.

Binance, the largest crypto exchange in the world, in the 42nd  spot.

Image credit: TImmy Loen

The leaderboard is provided by UK-based Hoptrail and is updated in real-time using both on-chain and off-chain data. The crypto risk analytics platform profiles and ranks almost 700 crypto companies globally, from exchanges and custody services to NFT marketplaces and online gambling services.

Hoptrail is used by financial institutions and crypto companies as well as law firms and solicitors to better understand their counterparty risk.

The platform rates companies by using 23 AML variables that collectively showcase how they are responding to and dealing with financial crime risks in the cryptocurrency sector. Companies score points for being licensed and demonstrating strong AML and know-your-customer controls.

Conversely, points are deducted for integrity failures such as hacks and financial penalties or being a defendant in serious criminal litigation.

See also: Independent Reserve pivots from retail investors as regulatory tightening looms

The penalty points are valid for two years before being reduced to one point for a further year. Hoptrail says this gives companies time to demonstrate that it has made enough changes to its internal processes.

Hoptrail was founded in 2022 by due diligence specialist Henry Burrows and Brynn O’Connell, who serve as the firm’s CEO and head of research, respectively.