When requested by the Government or law enforcement agencies, Binance will coordinate to resolve “money laundering” cases through cryptocurrency on this exchange.
The above information was shared by Mr. Jarek Jakubcek, representative from Binance, at a media meeting in Ho Chi Minh City, held on April 17.
Jarek Jakubcek shares about anti-money laundering activities on Binance. Photo: Le My
Mr. Jarek Jakubcek said that many people think that cryptocurrency transactions are anonymous, so many criminals take advantage of them to “launder money”, however, according to statistics, there are currently only 0.3% of criminals. “money laundering” through cryptocurrency transactions. Because of the fact, with Blockchain technology, authorities can completely investigate how the transaction process takes place through web3 wallet addresses (which are an identifier made up of letters and numbers). based on public and private keys. In essence, such an address is a specific “location” on the Blockchain where cryptocurrencies can be sent).
A Binance representative shared that, for example, 6 years ago, if you wanted to send money through Paraguay, you would have to pay a commission to an intermediary to be able to transfer it to the recipient. However, with cryptocurrency it is different, if you use Bitcoin, the transfer happens faster and the money will go directly to the recipient. At the same time, this transfer process will be saved on the Blockchain and users can use the transaction ID (TxID) to check the status and progress through the transaction history on the exchange or many sites. The web now also allows this. Therefore, when “money laundering” activities take place, the exchange will easily detect and coordinate with law enforcement agencies to handle it.
Recently, Binance has coordinated with law enforcement agencies in many countries, including Vietnam, to support the investigation of “money laundering” activities through cryptocurrency. At the same time, Binance now also integrates a system to support government law enforcement requests (Government Law Enforcement Request System). This feature is only available to governments and law enforcement agencies. Accordingly, these agencies can use the system to submit information requests. Binance will consider cooperating in each specific case to disclose information as required by law, in accordance with the exchange’s Terms of Use and applicable law.
When asked, can Binance detect and handle “money laundering” or illegal transactions on the exchange itself, or does it require a request from the authorities to handle it? A representative of this cryptocurrency exchange said that Binance’s team will automatically detect and immediately freeze accounts suspected of illegal transactions without waiting for the authorities to send requests. At the same time, when the incident involves two different countries, the exchange will freeze the account and coordinate handling based on the legal regulations of the countries, to determine whether the account is valid or not. violates the law or not.
“Account freezing must be done immediately, because cryptocurrency transactions often take place very quickly, this is like the activity of a cat stalking and catching a mouse, the mouse is constantly running while the cat must always be armed with its claws. to catch it as quickly as possible,” said a Binance representative.
In addition to coordination, Binance representatives also said that they regularly organize training programs for government agencies and law enforcement agencies in many countries around the world, on how to identify “money laundering” and illegal transactions through cryptocurrency.