In recent times, cryptocurrencies have faced both the BEST scenarios as well as the worst ones....
In recent times, cryptocurrencies have faced both the BEST scenarios as well as the worst ones. And that's not it, crypto might fall again in 2022.
"Cash is still king when it comes to illicit finance, and that's unlikely to change," says Kim Grauer, a researcher at Chainalysis. Leverage the transparency of blockchain technology, says Kim Grauer, Research Director at Chainalysis.
According to a Jan. 6 report by Chainalysis, the growth in legitimate cryptocurrency usage is “far outpacing the growth in criminal usage.” The share of cryptocurrency transaction volume associated with illicit activities has never been so low, accounting for just 0.15% of transaction volume in 2021.
She told Cointelegraph that, barring "runaway criminal events," she expected the growth in legitimate crypto usage versus illegitimate usage to accelerate further through 2022.
Also read: Crypto And Blockchain Adoption Is Happening! Thanks To UAE Regulators!
To fall ”and“ the narrative that crypto is primarily a means for criminals to do business is finally being put to bed ”. He's still king when it comes to illegal finance, and that likely won't change.
In 2021, carpet theft became the scam of choice for crypto criminals. Fraud revenue increased 82% to $7.8 billion in 2021, with more than $2.8 billion of that total coming from carpet theft alone.
However, Grauer said that doesn't necessarily indicate that carpet pulling will remain the most prevalent scam into 2022. Rather, criminals are likely to “abuse” “newer technologies” such as DeFi, NFT, and DAO as the space moves toward the web3.
“We saw this [in 2021] particularly in DeFi, where criminals not only targeted DeFi platforms for attacks like hacks or carpet theft but increasingly used DeFi platforms for money laundering.
Also, Grauer suggested that, although I don't agree with that Potential cryptocurrency bear markets affecting the rate or nature of crypto crime could be a major financial recession or depression.
As of 2021, law enforcement agencies around the world have had many notable achievements. In November 2021, the IRS Criminal Investigations announced that it had seized over $3.5 billion worth of cryptocurrency from non-tax investigations in 2021.
While the ratio was lower, cryptocurrency-based crime actually hit a new all-time high in 2021, with illicit addresses taking in $14 billion over the year, up from $7.8 billion in 2020, according to Chainalysis.
