Binance Founder Zhao Says Digital Assets Make Up 0.0014% of Financial Crime, 100 Times Less Than Traditional Finance
Summary
- Changpeng Zhao, Binance’s founder, said the share of illegal transactions in the digital asset industry is far lower than in traditional finance.
- He said illicit activity accounts for about 0.0014% of all digital asset transactions and that blockchain makes it easier to trace the flow of funds.
- He also said criminal acts should be separated from the digital asset technology used for them and viewed through the same lens.
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Digital assets account for a much smaller share of illicit transactions than traditional finance, according to comments cited by Wu Blockchain. Because blockchain networks are transparent and traceable, tracking the flow of funds can be easier.
Wu Blockchain reported on August 15 that Binance founder Changpeng Zhao said the digital-asset industry has long faced criticism over illegal transactions, but the actual data tell a different story.
Zhao said illicit activity accounts for about 0.0014% of all digital-asset transactions. He added that blockchain transaction records are public and the movement of funds can be traced, making it relatively easy to analyze and monitor illegal flows.
He also said criminal acts should be distinguished from the technology used to carry them out. Just as the use of banks or fiat currency by criminals does not make the banking system or money itself the problem, digital assets should be viewed the same way.
Uk Jin
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