As more countries adopt security measures in 2022, criminal use of cryptocurrencies will diminish: Chain Analysis

The global cryptocurrency expansion was seen in 2021, but several cryptocurrency-related crimes broke out and exposed the sector to the dark. As more governments learn to take advantage of the uncensored transparency provided by blockchain, criminal use of cryptocurrencies will decline worldwide, the new report claims. Blockchain is the underlying technology that supports cryptocurrencies. In that study, research firm Chainalysis states that the growth in the legitimate use of cryptocurrencies “much outperforms the growth in their criminal use.”

Cryptocurrency-based crime hit a record high in 2021, with illegal addresses receiving $ 14 billion throughout the year from $ 7.8 billion in 2020.

“Overall cryptocurrencies tracked by Chainalysis, total trading volume in 2021 increased to $ 15.8 trillion (approximately 11,71,09,600 chlores), an increase of 567 percent from the 2020 total. Given hiring, it’s not surprising that more cyber criminals are using cryptocurrencies, but the fact that the increase is only 79 percent, almost an order of magnitude lower than overall hiring, is all. It may be the biggest surprise of all, “the report said.

Transactions containing illegal addresses accounted for only 0.15 percent of the 2021 cryptocurrency transaction volume.

Due to the decentralization and inherently untraceable of crypto transactions, several government officials around the world have expressed concern about the illegal use of crypto assets. From money laundering to terrorist financing, the potential misuse of the crypto sector has been added to its delay in legalization.

The report further emphasizes that law enforcement agencies are stepping up efforts to ruin and prevent the exploitation of cryptocurrencies by criminals.

For example, in November 2021, a US-based Internal Revenue Service (IRS) criminal investigation announced that it had seized more than $ 3.5 billion in cryptocurrencies in 2021. All of these are from tax exempt investigations. That number represents 93 percent of all funds seized by the department during that period.

Anyway, the cryptocurrency market rose to $ 3 trillion (about 2,15,66,720 rupees) in 2021, the highest ever.

In last year’s report, Chainalysis revealed that crypto fraud boosted more than $ 7.7 billion from investors in 2021.

Last year, the most common form of fraud was the classic ragpur, which this year received $ 2.8 billion worth of cryptocurrencies from victims.

Are you interested in cryptocurrencies? In the gadget 360 podcast Orbital, we’ll discuss cryptography with Wazir X CEO Nischal Shetty and Weekend Investing founder Alok Jain. Orbital is available wherever you can get Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and podcasts.

Cryptocurrencies are unregulated digital currencies, not fiat currencies, and are subject to market risk. The information provided in this article is not intended or constitutes any financial advice, transactional advice, or other advice or endorsement provided or endorsed by NDTV. NDTV shall not be liable for any loss resulting from an investment based on the recognized recommendations, forecasts or other information contained in the article.

Stay tuned for the latest information on the Consumer Electronics Show in Gadgets 360 on the CES 2022 hub. As more countries adopt security measures in 2022, criminal use of cryptocurrencies will diminish: Chain Analysis

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