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.

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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, only 0.3% of criminals "launder money" through cryptocurrency transactions. In fact, with Blockchain technology, authorities can completely investigate how transactions take place through web3 wallet addresses (an identifier made of letters and numbers created based on public and private keys. In essence, such an address is a specific "location" on the Blockchain, where cryptocurrencies can be sent).

Binance representative shared, for example, 6 years ago, if you wanted to send money to Paraguay, you would have to pay a commission to the intermediary unit to be able to transfer it to the recipient. However, with cryptocurrencies, it will be different, if you use Bitcoin, the transfer will be faster and the money will be transferred 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 implementation process through the transaction history on the exchange or many websites today also allow this. Therefore, when there is a "money laundering" activity, the exchange will easily detect and coordinate with law enforcement agencies to handle it.

In recent times, Binance has cooperated with law enforcement agencies in many countries, including Vietnam, to support the investigation of "money laundering" activities through cryptocurrencies. At the same time, Binance has also integrated a Government Law Enforcement Request System. This feature is only for governments and law enforcement agencies. Accordingly, these agencies can use the system to send information requests. Binance will consider cooperating on a case-by-case basis to disclose information as required by law, in accordance with the exchange's Terms of Use and current laws.

When asked whether Binance can detect and handle “money laundering” or illegal transactions on the exchange itself or must it be requested by the authorities to handle it? The 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 a request. At the same time, when the incident involves two different countries, the exchange will freeze the account and coordinate the handling based on the legal regulations of the countries, to determine whether the account is illegal or not.

“Freezing an account must be done immediately, because cryptocurrency transactions often happen very quickly, it is like a cat chasing a mouse, the mouse is constantly running while the cat must always be equipped with claws to catch it as quickly as possible,” Binance representative likened.

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" activities and illegal transactions through cryptocurrencies.