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January 17, 2022
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Illicit Crypto Addresses Received $14 Billion in 2021, Only 0.15% of Transaction Volume Associated With Crime – Regulation Bitcoin News

According to the most recent information from Chainalysis, the whole cryptocurrency worth obtained by illicit addresses grew to a brand new all-time excessive of $14 billion in 2021. Although the brand new all-time excessive is nearly twice the $7.8 billion that was recorded in 2020, it represents simply 0.15% of the 2021 cryptocurrency transaction quantity.

Percentage of Funds Sent to Illicit Addresses Falling

The worth of cryptocurrency-related crimes recorded in 2021 surged to a brand new all-time excessive of $14 billion, a determine that’s virtually double the $7.8 billion which was obtained by so-called illicit addresses in the 12 months 2020. Nevertheless, this improve in the worth of funds transferred to illicit addresses continues to be a lot decrease than the typical development of the crypto economic system, the most recent Chainalysis information has proven.

Report: Illicit Crypto Addresses Received $14 Billion in 2021, Only 0.15% of Transaction Volume Associated With Crime

In a current weblog post breaking down the crypto economic system’s 2021 transaction quantity of $15.8 trillion, the blockchain evaluation agency Chainalysis asserts that the expansion in worth of funds transferred to illicit addresses will not be a sign that the area is now dominated by criminals. Rather, this development could also be a touch of simply how far the crypto economic system has expanded in 12 months.

To illustrate, the weblog submit factors to the 567% development in crypto transaction quantity which the evaluation agency is linking to the rising adoption of cryptocurrencies. Chainalysis additionally gives its viewpoint on the rising hole between illicit exercise quantity and legit quantity:

In truth, with the expansion of legit cryptocurrency utilization far outpacing the expansion of prison utilization, illicit exercise’s share of cryptocurrency transaction quantity has by no means been decrease.

Crypto Crime Impedes Adoption

To assist its place that illicit exercise’s share of cryptocurrency transaction quantity is on the wane, Chainalysis factors to the information which reveals that crime-related addresses solely accounted for 0.15% of 2021 volumes. This determine is decrease than the 0.62% recorded in 2020 and the three.37% that was recorded in 2019.

Report: Illicit Crypto Addresses Received $14 Billion in 2021, Only 0.15% of Transaction Volume Associated With Crime

Despite noting the low proportion of prison crypto transfers relative to the general transaction volumes, Chainalysis nonetheless concedes the “criminal abuse of cryptocurrency creates huge impediments for continued adoption.” The submit argues that such abuse usually “heightens the likelihood of restrictions being imposed by governments, and worst of all victimizes innocent people around the world.”

The weblog submit additionally urged that regulation enforcement companies have gotten more proficient at combating cryptocurrency-based crimes. It cites the indictment of a number of crypto funding scams by the U.S. Commodity Futures Trading Commission (CFTC) in addition to OFAC’s sanctioning of two Russia-based cryptocurrency platforms.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, creator and author. He has written extensively in regards to the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.














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