Reuters believes that crypto exchanges such as Binance are the hubs for criminals and money launderers.
Reuters which happens to be an international new agency recently reported that crypto exchange giants such as binance are proving to be the hubs or the hot points through which the criminals and money launderers are actively making money from. In the report, Reuters mentioned that Binance is the preferred destination for hackers, fraudsters and drug traffickers who intend to launder the money they earn unethically.
Reuters makes further claim saying that Binance was used in 2020 by a North Korean group to store their money which had come after a successful hack of a small Slovakian crypto exchange. The report also states that, Binance went on to receive an amount of $770 million in 2019, which actually was the illegal money earned through illicit activities, laundered through the crypto exchange.
Binance reactions on Reuters claims.
Binance happens to be one of the largest crypto currency exchanges in the world which helps the functioning of crypto market in a more efficient manner. The claims of Reuters surely made a big noise in the market as the claim was that “Binance Laundered $2.5 billion through the exchange in 5 years.”
In retaliation Binance and its team went on to make bold statements about the claims of Reuters. They made statements about the vision of their company. They exclaimed that the company’s main vision is to grow the crypto market in the most efficient and ethical manner. They are at the fore front in fighting the global money laundering activities. They also stated that, crypto transactions are easily traceable and only 0.15% were associated with illegal and unethical activities.
Binance states “Crypto Exchanges are not Money-Laundering Paradise.”
In response to strong allegations put up by Reuters, Binance made bold statements saying that Crypto Exchanges are no money laundering paradise, if at all they practice ethical and efficient trading at all times. They also exclaimed that, money laundering in fiat currency is more common in occurrence with a rate of 2% to 5% which values from $800 Billion to $2.5 Trillion.
Crypto Transactions are easy to trace.
Adding to their response, Binance said that, unlike cash, which is impossible to track, blockchain has proven time and again to be one of the most powerful tools for law enforcement. Since the emergence of crypto currency, there has been the debate about the issues in regards to money laundering in the market. While some claim that, the emergence of cryptocurrency has enabled the money launderers another efficient way to make unethical transactions, some claim that, if at all anything cryptocurrencies have brought down the incidence of money laundering.