The ledger function and immutability of blockchain are precisely the features that make criminal activities in such technologies unattractive, explained persistent crypto bull and Binance founder Changpeng Zhao.
Despite being commonly cited by crypto pessimists as the reason to avoid adoption, the idea that blockchain technology enables crime is a «complete myth», according to Binance CEO Changpeng «CZ» Zhao in an interview with «AFP» at a Paris-based tech conference.
«With large data, you can really figure out who owns which address with a fairly high degree of certainty,» he explained, highlighting that his firm worked with various law enforcement agencies worldwide. «Because of that, most criminals do not use blockchain for criminal activity. It’s just a very bad tool.»
Unchartered Territory
According to Zhao, the nascency of blockchain technology has created difficulties for regulators and it could take decades before market rules and requirements are settled.
«The regulators don’t know what to regulate,» 44-year old China-born Canadian Zhao said. «We have to wait for the industry to develop a little bit and then figure out the regulations.»
Not Unexpected
Zhao said the recent crypto turbulence felt «does cause worries» but it is nonetheless «not unusual» noting that the market, just like equities, goes «up and down».
On how Binance has been able to remain resilient in the midst of a shrinking market – the firm recently announced that it would hire for 2,000 jobs while competitors were cutting headcount – Zhao said that «very frugal» practices played a key role.
«We didn’t spend heavily on advertising, we didn’t name stadiums, we didn’t sponsor Super Bowl,» he said.
Mainstream Future
Although Zhao was reluctant to forecast the short-term recovery of crypto asset prices which have plunged by $2 trillion in seven months, he remained bullish on the market in the long term. He cited various applications such as fundraising for startups, income generation for artists and inclusion of the unbanked.
«I believe in 20 years everybody will be using blockchain technology for transacting value,» he said. «But they may not even think about it.»
