Crypto Illicit Activity Rate Shatters Industry Stereotypes

Binance's founder, Changpeng Zhao, also known as CZ, recently made some bold claims about the crypto industry's illicit activity rate during an interview at the ASEAN Tech Summit on July 31, 2026.

CZ argued that the crypto illegal activity rate is significantly lower than what critics assume, with a reported rate of 0.0014% of all transactions. This number is in stark contrast to traditional finance, which sees an estimated 2-5% of transactions linked to illicit activity.

The Binance founder credited blockchain's transparency and traceability as the key factors behind this low rate, making it easier for investigators to spot and monitor suspicious fund flows.

CZ also emphasized that criminal misuse of a payment method does not make the underlying system inherently flawed. He argued that using cash or banks doesn't automatically indict those systems, just like crypto shouldn't be unfairly targeted when used by criminals.