Bad Guys are Moving Away from Crypto, According to Binance CEO

Crypto Transactions are 'Too Traceable'

Citing a report from blockchain analysis firm Chainalysis, Binance CEO Changpeng Zhao (CZ) pointed out that only 0.15% of the total cryptocurrency transaction volume last year was for illicit activities, which was the lowest ever. In 2019, the figure stood at 3.37%, while in 2020, it was 0.62%.

With crypto transactions linked to illicit activity dropping dramatically over the past year, the Binance boss noted that perhaps the so-called bad guys are ‘moving away from crypto’ as they appear to be ‘too traceable.’

For instance, anyone can download the Bitcoin blockchain and see the details of every transaction. Compared with private banking transactions, there is zero visibility of the transaction or traditional bank transfers, where records and information about transactions remain only between institutions and don’t provide a complete picture of fund flows.

The CEO of Binance later went on to ask the crypto community 'What % of bank transactions are illicit? And the size of assets in banks vs crypto? Anyone know?'

Banks and Financial Crimes

Current investigations show that even after fines and prosecutions, well-known banking institutions such as JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon BK are all involved in moving funds for suspected criminals.

Infact, the total proceeds of crime generated in the United States were estimated to total approximately $300 billion in 2010, or about two percent of the overall U.S. economy at the time.