In the world of digital finance, security is a topic of utmost importance. Being a new market, there is obviously a lot of disagreement about the safety of this industry. And for it to grow, more people need to understand how it works.
Major exchanges around the world have been working to clarify key points like these, and Binance has led this process in some ways.
The broker, recognized as the largest cryptocurrency exchange in the world, has played a crucial role in the fight against illegal activities in the crypto space.
It formed a team of investigative and sanctions experts drawn from government agencies around the world to strengthen the exchange’s security process.
And so, it is working not only to strengthen its platform, but also the security of the cryptocurrency industry as a whole. Of course, it will benefit as the market continues to grow, but public perception often associates cryptocurrencies with illegal activities, and the reality is different.
According to Chainalysis’ Crypto Crime Report 2022, only 0.15% of cryptocurrency transactions in 2021 were related to criminal activity, a significant drop from 2020 when this rate was 0.6%. By comparison, the amount of money laundered in traditional financial systems is much higher – at least 30 times more.
The pseudo-anonymous nature of cryptocurrencies, combined with the transparency offered by blockchain technology, makes transactions public and traceable. It’s like everyone can see the account balances in the financial system. This not only provides a clearer picture of suspicious activity, but also makes it easier for authorities to identify and combat these crimes.
100,000 responses to authorities.
This year alone, Binance responded to approximately 53,000 requests from authorities around the world. Last year the volume was comparable.
In addition, Binance offers training and workshops for agents and researchers around the world, including Interpol, Europol, central banks, police and researchers from various countries. Here in Brazil, the broker has already provided this type of training to officers from the civil and federal police, in addition to the public prosecutor’s office.
Another important point, besides traceability, is the speed at which these government or private sector experts can track funds on the blockchain.
Because it is cross-border in nature, it is possible to track the flows of money around the world, and responses to authorities are provided within an average of three days. This is a significant advance over the traditional financial system.
Binance played a crucial role in several high-profile investigations, including dismantling a ransomware gang and helping recover $500 million in the Poly Network attack. There are several examples of this type of collaboration worldwide.
And why is it important to pay attention to these actions?
These types of actions help make the entire blockchain ecosystem more secure for users, be they large or small investors.
By doing so, a company also shows its commitment to building a sustainable and solid crypto ecosystem, allowing assets to appreciate in value as we see this year, and launching new successful projects.
And in addition to research, you need to know who uses the platform. When cryptocurrencies emerged, controls were not strict. And they started to structure themselves.
Nowadays you have to show who you are and where your money comes from, which helps fight crimes like money laundering.
For example, Binance today requires 100% of users to pass ‘know your customer’ checks, which is again an important step forward for the security of the ecosystem as a whole, as it is the largest in the world and many investors transact cryptocurrencies within the ecosystem . the platform.
In recent years, the exchange has invested and continuously announced the hiring of experts to assist in this process of improving controls.
While in the past it was easier to use cryptocurrencies for illegal activities, the right is becoming increasingly tight. Thanks to these efforts from major exchanges committed to the long-term growth of the industry.
Binance has shown that in addition to being a major cryptocurrency exchange, it is also committed to security, transparency and cooperation with authorities around the world, demonstrating a maturity and sense of responsibility that strengthens the entire sector.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
