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US officials expressed concern over the use of cryptocurrencies in illegal trades, including drug dealing and thefts.
Chainalysis Inc., a blockchain forensics firm, concluded that Binance has the most number of transactions related to criminal activities than any other crypto exchange.
Binance spokesperson denied the allegation and pointed out that their organization is making constant efforts to improve its system and make it more robust and secure.
Pros and cons of the secured transactions
While crypto ensures to provide more secure transactions and ensures that they are impossible to trace, it comes at a price that illegal transactions are also impossible to trace. Even though it was under suspicion from the start, there were no remarkable traces of any illegal activity.
This month an incident grabbed the world’s attention when Bloomberg News reported that Colonial Pipeline company paid $5 million ransom to hackers who allegedly hacked their company. It also revealed that they paid in untraceable cryptocurrency within hours of the breach.
The bitcoins value soared when Bloomberg reported that following the incident, The justice department and internal revenue service had started an investigation into Binance.
Binance’s legal stirs
Binance Holdings Ltd. A company co-founded by Changpeng Zhao in 2017, Which is an exchange platform for cryptocurrencies. It has grown as rapidly as the industry it operates in. It is incorporated in the Cayman Islands with an office in Singapore but still lacks a single corporate headquarter.
It was also under the investigation by US Commodity Future Trading Commission after Bloomberg News reported that it allowed Americans to make illegal transactions with firms that have not registered with CFTC.
Changpeng Zhao, CEO of Binance, has denied any such allegation and stated that his organization follows all rules and regulations of the jurisdiction in which it operates and has partnered with firms like analysis to improve their systems.
The US has been pretty strict towards the digital currency ecosystem to ensure that it doesn’t create loopholes to the country’s security control remains in the hands of the authorities. They have been thoroughly investigating the ecosystem for illegal activities by hackers and terrorists and hackers and those trying to skip the taxes.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
