- Binance CEO challenges the narratives from the banks regarding crypto’s association with illicit activities.
- Data shows fiat currencies like the U.S. dollar are implicated in $3.2 trillion in illegal activities annually.
- However, crypto’s roles in global fraudulent activities constitute less than 1%
In a recent post on X, Binance CEO Richard Teng shared a viewpoint that challenges the prevailing narratives from the banking sector regarding cryptocurrency’s alleged association with illicit activities. Teng highlighted facts from an authority source to counter the frequent calls to shut down crypto based on alleged ties to criminal activities.
Specifically, the Binance CEO quoted an analysis conducted by Andrzej Gwizdalski, a lecturer at the University of Western Australia (UWA). This researcher curated data from the United Nations (UN), World Economic Forum (WEF), and Cryptoanalysis.
In the report, Gwizdalski stressed the importance of perspective when addressing concerns about illicit financial activities. Contrary to the popular narrative propagated by some bankers, the report revealed that crypto fraud constitutes less than 1% of the trillion dollars in illegal activities within the traditional fiat monetary system.
In particular, the data presented in the report highlighted that fiat currencies like the U.S. dollar are implicated in an estimated $3.2 trillion in illegal activities annually. Additionally, the report noted that this figure is over 100 times greater than the $20 billion linked to cryptocurrencies.
Based on the data, the lecturer argued that it is imperative to reconsider the prevailing narrative surrounding crypto and recognize the comparatively minor role it plays in illicit financial transactions.
Besides, the university researcher underscored the inherent risk of using crypto for illegal purposes. Gwizdalski noted the transparent recording of every transaction within the blockchain is a feature criminal entities cannot deal with. Specifically, the researcher contended that crypto’s transparency makes it a less attractive option for those engaging in illicit activities.
With the traditional fiat system’s pronounced involvement in corruption and money laundering, Gwizdalski urged caution against allowing the negative reputation to extend to cryptocurrencies.
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