There has been a remarkable development regarding cryptocurrencies, which is among the most controversial investment tools of recent years. A study has revealed important findings about why the crypto money world has been declared a ‘scapegoat’. Sharing the “Crypto Crimes Report” of Chainalysis, known for its analysis of blockchain technologies, Binance revealed striking facts.
According to the figures provided by Binance, 0.6% of all cryptocurrency transactions in 2020 consisted of illegal transactions. This rate decreased to 0.15% in 2021. The report, which stated that these illegal transactions have a volume of 14 billion dollars, actually showed that when compared to traditional finance data, illegal crypto money transactions are a big deal.
Illegal transactions at banks and other financial institutions amount to $2 trillion
According to the same report, an average of 2 trillion dollars of illegal transactions are carried out each year through banks and other traditional finance companies. This figure corresponds to 5 percent of the world’s gross product. The data shared in the Crypto Crimes Report revealed that the crypto money world is more innocent in terms of illegal transactions than traditional financial systems. Of course, these 14 billion dollar transactions must be prevented somehow.
So why is it more visible, even though less crime is being committed in the cryptocurrency world?
According to Binance, the low level of illegal transactions in the cryptocurrency world is possible thanks to the transparent nature of blockchain technologies. Tracking the transactions one by one helps to understand where the illegally obtained money comes from, where it is sent and in how many parts. As a result of these, both criminals are found and the grievances that occur are eliminated.
This transparency causes a negative perception about the crypto money world on the media side. Since blockchain technology is public and traceable, the media is also making more news. According to Binance, criminals and illicit transactions in the crypto world make up a tiny fraction of global transactions, especially when compared to traditional finance, but the transparency of the technology can create a false perception that there is much more illicit activity than previously thought.
Binance is conducting special studies for the detection of crimes committed through cryptocurrencies!
In a news we shared with you last week, we mentioned that the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and Binance boss CZ. CZ made a statement on the events and explained how Binance cooperates with law enforcement agencies around the world as follows: Binance cooperates with law enforcement agencies in both the USA and other countries. As a result of the detailed review of 55,000 requests received in 2022, we secured the freeze/seizure of $125 million in funds.
*This content cannot be considered as investment advice.
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