Illicit activity falls from 0.6% to 0.15%
Blockchain’s traceability combats misuses
Binance has $2bn investment from MGX
Illicit activity in cryptocurrency transactions has plummeted as a result of investment in compliance levels across the digital asset industry.
Binance, the world’s largest cryptocurrency exchange platform, says shadowy practices including money laundering have dropped from 0.6 percent to 0.15 percent.
More traditional currencies, which are usually issued by governments, last year had a much higher level of illegal activity, and accounted for 5 percent of global GDP.
“We’ve consciously been improving this,” said Bader Al Kalooti, Binance’s Menasat head of growth and operations, when asked about crypto’s security.
“Sure, it was a problem initially. The industry matured and addressed it right away and made a drastic improvement in those numbers, given the technology allows for it.”
The remarks highlight how blockchain’s traceability has helped combat misuse more efficiently than traditional financial systems.
Earlier this year, Binance secured a $2 billion investment from MGX, Abu Dhabi’s state-owned investment firm. This was one among a series of institutional investments into crypto from the region.
As regulatory scrutiny continues to evolve with tighter rules tipped to encourage tokenisation and drive crypto market expansion, Al Kalooti believes that cryptocurrency’s utility will only expand.
“Bitcoin could ultimately be the global reserve currency one day,” he said.
To find out about crypto’s next yield frontier, watch the full video.
