Armenia May Become a Cryptohub of the Region - Vice President of Binance

YEREVAN, Oct. 19. /ARKA/. In an exclusive interview with ARKA news agency Tigran Ghambarian, Vice President of Global Intelligence and Investigations for Binance, speaks about the opportunities and risks of cryptocurrencies, prospects and advantages of opening a branch of the company in Armenia. 

ARKA - When speaking about cryptocurrency, a lot is said about security problems. Comparisons are made with the traditional banking sector and crypto is believed to be more dangerous for ordinary users, because many people don't understand how the processes work, and because of this they become victims of criminals. As an expert, do you agree with this?

Т. Ghambarian - I studied criminal content of bank users before the advent of crypto. Criminals used different financial methods. Suppose I give you cash - how can you trace its origin? You can't. But with cryptocurrency you can. In 2014, when we for the first time successfully traced a Bitcoin transaction, cryptocurrency ceased to be a good way of keeping a transaction anonymous. We have tools and methods that allow us to analyze, to monitor the processes, to track criminal actions and take appropriate measures. Bitcoin is too transparent for criminals to use it. Of course, there are people who are trying to do that. That's what this team at Binance is there for, to investigate, to identify these people. 

ARKA - How does this relate to one of the basic ideas of crypto - anonymity? Doesn't it conflict with the principle of freedom? 

Т. Ghambarian - Freedom and anonymity are not the same things. All transactions are publicly available and take place in the network, but the cryptocurrency was not originally created to be purely anonymous. Bitcoin was designed to make all transactions publicly available. And companies like Binance are developing tools that allow us to identify entities on the blockchain. We can see them and understand how they interact with each other. Bitcoin was created so that people could make transactions for themselves. For example, when I used to send money to Armenia, I had to go to a certain point, fill out forms, and so on. Cryptocurrencies are an important mechanism for convenient transfer of money to any country, including Armenia. I think it's a useful thing. 

ARKA - It is often said that crypto users become easy prey for hackers because they don't think much about security. What do the statistics show, is that true? 

Т. Ghambarian - Binance is a platform with a more than 150-member security team who make sure that hackers don't get their way. We have educational programs that prevent loss of funds. Of course, this kind of thing happens, but it's a human factor. We also have a fund set up to help people who have suffered serious losses. This is part of the services provided by Binance. Of course, this help is a compromise, but it is good for people. 

ARKA - So many people use online wallets. At the same time, people who are concerned about security are using cold wallets. This does not protect them from investing in unknown cryptocurrencies that cause depositors to lose money. At the same time, a comparison is made with the banking sector and it is argued that this is not possible there. How would you comment on such cases? 

Т. Ghambarian - You will be surprised, but in the banking sphere accounts are often hacked. Some people lose their passwords, that is a real threat. I think that it is safer to create cryptocurrencies, which are safer also because encryption methods are used. Again, Binance has a number of educational programs that help you figure out how to keep yourself safe. 

ARKA - Most people have heard of crypto, but have no idea about the processes. How are you trying to solve this problem? 

Т. Ghambarian - We hold trainings with law enforcement agencies, we work with local organizations, we organize educational campaigns, there is a whole cycle of training materials at Binance Academy. This is a very useful educational platform. There is a lot of misinformation around cryptocurrencies, which scares people, and in this case the best option is more frequent contact with regulators. But at the same time, there is a whole generation of people who are relatively young and highly involved in the cryptocurrency industry. You know, we want to be in Armenia. As the largest crypto exchange in the world, we are working in that direction, we want to be present everywhere, but it will require some legislative framework. That is, entering the market will require the Central Bank and the authorities to have their say. 

ARKA - Are there any plans to open a branch in Armenia? 

Т. Ghambarian - If the cryptocurrency industry is supported by the government and the market is regulated, we will certainly consider this issue. As a global company, we are trying to have a regional presence in such a way that Armenia also benefits from it. The country doesn't have much export, but there are good specialists, who are interested in technologies. I think Armenia should and can become a cryptohub. We cooperate with government representatives and regulators to share our experience and knowledge. There's no reason why we couldn't do that here as well. 

ARKA - A memorandum of cooperation was recently signed with the government of Kazakhstan. Are there plans to sign a similar document with Armenia? 

Т. Ghambarian - We are open for dialogue and cooperation with governments and regulators around the world.

 ARKA - Is Armenia in general ready to get actively involved in the cryptocurrency community and crypto-life? 

Т. Ghambarian - The country's population as a whole is well educated and open to technology. I think we need more clarity and guarantees from the government. Especially the issue of payments, where cryptocurrency can play a big role in transfers from the Diaspora. Cryptocurrency is the logical solution for this: fast, cheap, secure. 

ARKA - We have the example of China, where the state adopts laws, which try to regulate this sphere. Is it possible that Armenia will decide to ban cryptocurrencies? 

Т. Ghambarian - Armenia is a unique country, and it can appreciate the advantages of cryptocurrencies. I hope it will be possible to avoid a similar situation in the country. Too much regulation in this sphere is bad for the country and economy. Armenia has no natural resources, no oil, but technology can become the future for the country, if companies like Binance work here. Armenia can become a cryptohub in this region, and a lot of opportunities will open up. 

ARKA - Do we really need legislative regulations for this sphere to develop, or is it just a desire of states to take control over all possible money flows? 

Т. Ghambarian - I cannot speak on behalf of the governments, they are doing their job. But I will stress that in my experience of investigations there were difficult cases of crimes with cryptocurrencies, and I assure you that without blockchain technology most of them would not have been solved. I have realized how powerful and fast an investigative tool blockchain can be. For example, in 2020, the Twitter accounts of Ilon Musk, Bill Gates, and many other famous people were hacked, and it took two weeks to fix the problem. The whole investigation is a prime example of how traceable cryptocurrency is. Bitcoin was used in that case. In another case I worked on, twenty-five children were saved (the Welcome To Video story). Had the criminals not demanded Bitcoins, we never would have saved those children. When they say that using Bitcoin is a bad thing, I think of these children. When you become familiar with cryptocurrency, you realize that cash is more dangerous. No one knows who created bitcoin. There are a lot of misconceptions about it. People like to imagine things as being more complicated than they really are, giving it a kind of importance. But a new generation is already growing, and hopefully there are people in Armenia, too, who understand that cryptocurrencies are more reliable. Such companies are serving millions of customers and opening thousands of jobs. It would be great if a company like this started in Armenia. 

ARKA - Have you encountered situations when the government has been uncooperative on the issue of investigations? 

Т. Ghambarian - We help and work with governments. Sometimes we find out something and then they do what they have to do. But it often happens that they come to us and ask if we can help them with this or that investigation. We have the tools to do that, and we can help. That's why we do global training with law enforcement. It's not just a question of getting the money back. If a case is not properly investigated, other innocent people are targeted. We conduct investigations for the benefit of all clients. We have the ability to better track transactions that target more vulnerable people. -0-

 

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17:05 10/19/2022