With the increase in digital asset-related criminal activities, Binance has taken important strides to address them. In an event named "Securing the Future of Crypto", Binance joined hands with Chainalysis, taking a collaborative approach to enhance compliance and fight against crypto crime.
Alec Zebrick, APAC Manager of Investigations and Special Programs at Chainalysis, highlighted the rise in ransomware crimes by 10.3% in 2023, with payments potentially reaching $400 million. Unlike other related scams and hacking crimes, which have seen a decrease, ransomware has targeted institutions with substantial financial capabilities.
To counteract these risks, intensified collaborations between public and private sectors are crucial, as per Jarek Jakubcek, Head of Law Enforcement Training at Binance. Binance’s Investigation team voluntarily cooperates with law enforcement agencies globally, delivering practical assistance swiftly. Furthermore, Binance conducts training sessions for these agencies, aiding in the confrontation and seizure of criminal proceeds. Over 70 of such global training sessions have been administered so far in 2023.
The event also saw discussions on AML trends and the dynamics of their landscape. Jarek shared insights about the rising focus on "KYT" (Know Your Transaction), which emphasizes understanding not just the customer but also the origin and destination of funds. Such compliance measures, which were in a nascent stage or non-existent earlier, have seen significant development recently, with many exchanges implementing mandatory KYC and other measures to combat criminal activities.
Minjae Kim, a KNPA investigator, emphasised the importance of a standardized framework for collaboration between law enforcement agencies and private companies like Binance and Chainalysis. The ultimate goal is to ensure greater trust and security in the cryptocurrency sphere - a challenge that requires the collective efforts of both public and private sectors.