In a bold move, Binance CEO Richard Teng takes on bankers advocating for the shutdown of the cryptocurrency industry, countering their claims with data-backed analysis.

Teng shares insights from Dr. Andrzei Gwizdalki, who compiles data from reputable sources such as the UN, WEF, and Chainalysis. According to Dr. Gwizdalki, perspectives are crucial in addressing illicit financial activities.

Richard Teng Lauds Dr. Gwizdalki’s Analysis

Dr. Gwizdalki, a University of Western Australia lecturer, unveils a significant contrast in illicit financial activities through comprehensive data compilation.

In her analysis, she mentioned that United Nations reports reveal an annual global money laundering estimate of 2-5% of the world’s GDP. The money included ranges from $800 billion to $2 trillion. This clandestine activity poses challenges in accurately estimating the total funds involved and the failure of anti-money laundering policies.

Moving further, the analysis covers the huge impact of global corruption and the amount included. The World Economic Forum’s partnering against corruption initiative exposes the staggering cost of corruption, bribery, theft, and tax evasion, amounting to $1.26 trillion annually.

This sum is equivalent to the combined economies of Switzerland, South Africa, and Belgium. The report also notes that despite the significant economic impact, a concerning number of individuals in the EMEA region consider such corruption acceptable.

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Crypto Frauds Vs Traditional Fiat Frauds

Coming to crypto frauds, Chainalysis data indicates a record $20.1 billion in crypto-related crimes in 2022, with a 7% increase in stolen funds. Interestingly, other illicit crypto transactions, including scams and terrorism financing, experienced a decline during this period. However, the reported figure only includes on-chain activities, excluding off-chain crimes like fraudulent accounting by crypto exchanges.

UN Secretary-General António Guterres emphasizes how corruption underpins political dysfunction and societal division, underscoring the severe consequences of illicit financial activities.

Dr. Gwizdalki adds a crucial perspective, emphasizing that traditional fiat currencies, particularly the USD, are implicated in an estimated $3.2 trillion in illegal activities annually. This figure starkly contrasts with the $20 billion linked to cryptocurrencies, as the UN, WEF, and Chainalysis reported.

At last, praising the analysis, Richard Teng asked everyone to reconsider the perspective on cryptocurrency. The revelation sparks discussions on the wider implications of financial misconduct and challenges prevailing narratives on the role of cryptocurrencies in illicit activities.

Also Read: EU To Announce Landmark Act On Regulating ChatGPT and AI Tech

The post Binance CEO Richard Teng Slams Bankers on Traditional Monetary System Frauds appeared first on CoinGape.

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Filed under: News - @ December 7, 2023 7:25 am