Illegal encrypted addresses received US$14 billion in 2021, accounting for only 0.15% of crime-related transactions-Regulating Bitcoin News


According to the latest data from Chainalysis, the total value of cryptocurrency received by illegal addresses increased to a record high of US$14 billion in 2021. Although the new all-time high is almost twice the USD 7.8 billion recorded in 2020, it only accounts for 0.15% of the cryptocurrency transaction volume in 2021.

The percentage of funds sent to illegal addresses has dropped

The value of crimes related to cryptocurrency recorded in 2021 has soared to a record high of US$14 billion, which is almost double the US$7.8 billion received by so-called illegal addresses in 2020. The latest Chainalysis data shows that the value of funds transferred to illegal addresses is still far below the average growth rate of the crypto economy.

Report: In 2021, illegal encrypted addresses received US$14 billion, accounting for only 0.15% of crime-related transactions

In recent blog postal Blockchain analysis company Chainalysis broke the crypto economy’s $15.8 trillion transaction volume in 2021, asserting that the increase in the value of funds transferred to illegal addresses does not indicate that the field is now dominated by criminals. Conversely, this growth may indicate how far the crypto economy has expanded in 12 months.

To illustrate this point, the blog post points out that the volume of crypto transactions has increased by 567%, which the analyst firm believes is related to the increase in the adoption rate of cryptocurrencies. Chainalysis also put forward its own point of view on the widening gap between the amount of illegal activity and the amount of legal activity:

In fact, as the growth of legal cryptocurrency use far exceeds the growth of criminal use, the share of illegal activities in cryptocurrency transactions has never been so low.

Crypto crime hinders adoption

In order to support its position that the share of illegal activities in cryptocurrency transaction volume is declining, Chainalysis pointed out that data shows that crime-related addresses accounted for only 0.15% of transaction volume in 2021. This figure is lower than the 0.62% recorded in 2020 and the 3.37% recorded in 2019.

Report: In 2021, illegal encrypted addresses received US$14 billion, accounting for only 0.15% of crime-related transactions

Although noting that the proportion of criminal cryptocurrency transfers relative to overall transaction volume is low, Chainalysis still admits that “criminal abuse of cryptocurrencies poses a huge obstacle to continued adoption.” The post argued that such abuses often “increased the government” The worst of the possibility of imposing restrictions is that innocent people all over the world are victimized.”

The blog post also shows that law enforcement agencies are becoming more adept at fighting crimes based on cryptocurrencies.It quoted indictment U.S. Commodity Futures Trading Commission (CFTC) and OFAC sanctions Two Russian-based cryptocurrency platforms.

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Terence Zinwara

Terence Zimwara is an award-winning journalist, writer and writer in Zimbabwe. He has written a large number of articles about the economic difficulties of some African countries and how digital currencies can provide a way out for Africans.














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