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According to Binance CEO Changpeng Zhao, the bad guys are moving away from cryptocurrency

Despite widespread perceptions that cryptocurrencies are utilised for illicit purposes, the CEO of Binance, the world’s largest cryptocurrency exchange, feels differently.

‘Too Traceable’ Crypto Transactions

Binance CEO Changpeng Zhao (CZ) cited a research from blockchain analysis firm Chainalysis, claiming that criminal activity accounted for only 0.15 percent of global bitcoin transaction volume last year, the lowest level ever. The percentage for 2019 was 3.37 percent, while for 2020 it was 0.62 percent.

With the number of crypto transactions tied to illegal activities declining substantially over the last year, the Binance CEO speculated that the ‘bad guys’ may be’moving away from crypto’ because it is ‘too traceable.’

Anyone can, for example, download the Bitcoin blockchain and examine the details of each transaction. When compared to private banking transactions or typical bank transfers, where records and information about transactions remain exclusively between institutions and do not provide a complete picture of capital flows, there is no visibility of the transaction.

‘What percent of bank transactions are illicit?’ Binance’s CEO later asked the crypto community. What about the size of assets in banks vs. cryptocurrency? ‘Does anyone know?’

Financial Crimes and Banks

Current investigations demonstrate that well-known banking organisations like JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon BK are all involved in shifting funds for suspected criminals, even after penalties and prosecutions.

In reality, in 2010, the total proceeds of crime generated in the United States were projected to be around $300 billion, or around 2% of the country’s overall economy.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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