Business Consulting Firm Expects 30% Drop in Criminal Cryptocurrency Transactions by 2024 – Bitcoin News

Consulting firm Gartner predicts that criminal cryptocurrency transactions or transfers will decline by 30 percent by 2024. Factors such as the transparency of blockchain and the democratization of fraud prevention tools will contribute to this decline, the company said. such transactions.

Blockchain Transparency

although surge In the value of cryptocurrency-related crimes recorded over the past year, business consultancy Gartner predicts that “successful cryptocurrency theft and ransomware payments will decline by 30 percent within two years.” According to Gartner, the decline will stem from “criminals’ inability to move funds outside the blockchain network.”

In an article published by the company blog, Gartner explained that this forecast is based on four main factors, one of which is the transparency of blockchains, which makes them less desirable for bad actors. In explaining why this transparency is key, the blog post states:

Contrary to popular legend, cryptocurrencies are not a safe haven for anonymous criminals. In fact, with the help of smart analytics, it is easier to track funds on the blockchain than on traditional payment networks, but they can take a circuitous route.

To illustrate this point, the article mentions 23 blockchains, which it says “represent about 99% of all blockchains’ market capitalization.” According to Gartner, it is easier to integrate a so-called anti-blockchain fraud system with 23 blockchains than with thousands of enterprise systems and payment networks.

While it can be challenging to turn blockchain metadata into useful information, the consulting firm’s article concluded that, done right, those hunting criminals could have the ability to flag suspicious payments and addresses.

Democratization of Fraud Prevention Tools

Another factor helping to reduce crypto crime is the democratization of fraud prevention tools that blockchain intelligence firms are currently using, according to a Gartner blog post.

The increasing number of anti-ransomware measures implemented by governments and the fact that most blockchain-related transactions are conducted through regulated virtual asset service providers (VASPs) means that criminals will increasingly prefer to use opaque traditional payment network instead of blockchain to transfer ill-gotten gains.

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Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.