The success of Binance and other exchanges has been causing disputes for several years now. Many people and even authorities claim that the security and anonymity, crypto gives, may cause major law violations such as drug sales, investment frauds and stemming from hacks. However, is it really so? We won’t just speculate and will bring straight facts to prove those critics wrong.
Reasons of worries
Obviously, the opinion has to be based on some arguments and will try to counter every one of them.
Crypto has trespassed the 1T$ mark quite a long time ago with only 0.15% transactions being made by illicit addresses, that were immediately handed to the authorities for further actions and investigation (statistics by Chainanalysis). If we divide the number sounds like a lot. However, the overall money laundering throughout all the sectors and not only crypto is said to be 2 to 5% of the GDP and that is somewhere between 800B$ to 2T$, which makes the 0.15% in crypto minor.
Crypto was considered a scam since the very beginning of it. Multiple big players from the stocks market were explaining the miracle of cryptocurrency as just people, trying to hop on the trend and buying air. Though, where are we right now? People are using physical crypto wallets, embody their ingenious ideas using blockchain and even receiving salary on stablecoins. Same it is with security. You could probably say Bitcoin wasn’t the most reliable asset 4-5 years ago, but considering all the inspections and investigations on newer cryptocurrencies that is clearly a myth nowadays.
Binance specifically is usually accused of not paying enough attention to who the exchange’s customers are. However, what about the KYC and all the AML (anti-money laundering) regulations nearly each exchange has? The lack of such solutions would lead to exchanges being banned in most countries, but they are still active and working - a specific example of the security prosperity.
We hope crypto doesn’t face any problems and conflicts due to the possibilities it gives as well as we are sure those 0.15% will only lower with time.