Cryptocurrencies are often regarded with suspicion and fear due to their connection to crime and illicit activities. This is mostly a myth, based on outdated information. In reality, blockchain's inherent transparency allows law enforcement agencies to track transactions and detect criminal activity with ease. This is assisted by the KYC policies implemented by most exchanges and resources shared by crypto exchanges like Binance which have played a crucial role in numerous law enforcement operations and in providing education and training to authorities on understanding blockchain and cryptocurrencies activities.

Though illegal crypto volumes reached an all-time high in 2022 according to a Chainalysis report, the total share of all crypto activity that was linked with illegal activity was only 0.24%. This is by far less than the billions of dollars laundered annually through the traditional financial system.

From the United States Treasury Secretary Steven Mnuchin in 2019 to Europol and the Basel Institute on Governance, multiple parties have spoken up on this topic, but the facts point to a different direction. Binance, the world’s largest exchange by trading volume, has been actively responding to law enforcement requests to help combat organized crime - in 2021 alone, they responded to 47,000 law enforcement requests with an average response time of three days.

Thanks to their position, crypto exchanges have involved themselves in numerous cybercrime investigations, such as the dismantling of Fancycat, a cybercriminal ring responsible for more than $500 million in illict activity. Moreover, these exchanges are also helping law enforcement agencies to understand how blockchain and cryptocurrencies operate and may be used in illicit activities by providing training programs.

Overall, crypto exchanges like Binance have made a big effort in tackling illegal cryptocurrency use, and have undoubtedly improved the safety and security of the cryptoecosystem and general public.



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