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Ensuring the Sustainable Growth of the Crypto Industry: Our Discussions with the UN and INTERPOL

2020-12-18

At Binance, we are committed to furthering the sustainable development of the industry which allows cryptocurrencies to be more widely and safely used around the world. As a global cryptocurrency exchange, we work closely with various law enforcement agencies and regulators worldwide to ensure the security of our users’ funds and protect our platform from bad actors and criminal activities.

Over the years, we have continued to engage with global institutions and intergovernmental organizations such as the United Nations (UN) and the International Criminal Police Organization (INTERPOL) to form actionable discussions and working relations to achieve our common mission of protecting the industry. Through the efforts of our compliance team as well as security, tech and investigation teams, we align our anti-fraud operations and regulatory compliance with international initiatives to prevent financial crime. 

INTERPOL Working Group on Dark Web and Virtual Assets

On December 14 and 15, INTERPOL, an international organization that facilitates worldwide police cooperation and crime control, hosted its 4th working group with members from law enforcement, academia and the private sector. Binance Chief Compliance Officer Samuel Lim joined around 56 countries, government representatives, regulators, law enforcement agencies and fintech companies in a closed discussion addressing anti-crime and security concerns within the virtual assets industry, including:

  • Detecting and preventing scams and financial fraud activities that use dark web and virtual assets

  • Fighting terrorist use of dark web and virtual assets through a deterministic analysis of transactions aided by Artificial Intelligence (AI) and Machine Learning

  • International cooperation, trust and sharing of relevant intelligence and investigative leads in dark web and virtual assets investigations

  • Harmonization of efforts and proposals for the seizure and selling of criminal proceeds in virtual assets

This working group, through which various typologies, industry tools, collaboration methods and information sharing techniques are explored, is a great example of how law enforcement agencies and stakeholders are actively working with crypto exchanges like Binance to further limit and prevent illicit crypto activities. This coordinated effort also involves traditional players like financial institutions, which are also involved in combating financial crime.

We believe that our exchange and other crypto platforms require dedicated resources and channels where law enforcement agencies and other organizations can work together to investigate and prevent illicit activities.

United Nations Office on Drugs and Crime 

A few weeks prior, on November 24 to 26, we also participated in the 3rd Southeast Asian Cryptocurrencies Working Group Meeting held by the United Nations Office on Drugs and Crime (UNODC). This meeting featured several representatives from regulators across Southeast Asia, which is an active and engaged market for digital assets. 

Samuel participated in a panel discussion on DeFi (decentralized finance) and stablecoin markets with representatives from FinCEN and other blockchain companies. He shared his insights on the capabilities of automated swaps and liquidity pools and the challenges and opportunities they present to industry standards and regulations.

The meeting emphasized regulatory frameworks on cryptocurrencies from each Southeast Asian country, including recommendations for combating money laundering and best practices for how each country interacts with fintech, blockchain and cryptocurrency trading companies. In addition, the participants discussed trends in crypto safety, crimes, analytic tools and procedures in investigating illicit cryptocurrency transactions.

We appreciate the invitations extended to Binance from INTERPOL and the UNODC to join these working groups which share our common mission of furthering safety and sustainability in the digital assets space. Our goal is to continue participating in these working groups with law enforcement agencies, regulators and industry leaders to find solutions to our industry’s challenges and shaping a positive path forward for the use and access of cryptocurrencies. 

Building sustainable growth of the industry together

Outside of these events, we have actively participated in many others to support our role and responsibility in the industry. Our compliance team has been hard at work to further the security and sustainability of the blockchain and cryptocurrency market, including the Binance ecosystem. Our continued collaboration with leading regulators and institutions around the world helps us further realize these objectives while ensuring our users, platform and services are protected from criminal activities. 

We believe the greater potential and uses of cryptocurrency can be realized by playing an active role in these efforts.