- The upcoming year has a high chance to see a reduction in crypto crime because of strict law enforcement and transparency in the regulatory actions.
- The report published on January 6th on behalf of Chainalysis says that the system of legal crypto use is far more than the illicit ones.
- According to her, the entire cryptocurrency network is looking hopeful because the illegitimate transaction volume is falling soon.
The upcoming year has a high chance to see a reduction in crypto crime because of strict law enforcement and transparency in the regulatory actions. According to Kim Grauer, the researcher in Chainalysis, cash is rendered as the king even when the method is not legal- and there is a rare chance that it will change anytime soon. Blockchain technology is taking care of it, says the research Director, Chainalysis.
The report published on January 6th on behalf of Chainalysis says that the system of legal use is far more than the illicit ones, which is why the crime rate is going down. The year 2021 has witnessed only 0.15 % of the illegal activities associated with cryptocurrency in the entire volume of transactions done. However, Cointelegraph was told that there could be immense growth of regulators, and there will be an enhancement of legitimate cryptocurrency that will go up in 2022.
According to her, the entire cryptocurrency network is looking hopeful because the illegitimate transaction volume is falling soon, and the criminals can no longer transact with deceptive activities. It is a win for law enforcement because they take strict actions against fraudulent activities. Also, there is default transparency of the world of cryptocurrency so that there are no undesirable ways for transferring funds. Cash remains the king of illicit financial transactions, but at least the crypto dimensions are safe.
Different type of Crypto Crimes
Rug pulls give a choice for illegal activities for all the criminals out there, and they started doing scams. The revenue went to 82% in 2021, which amounted to 7.8 billion dollars. About 2.8 billion dollars, the entire amount was coming from the rug pull scam itself. But that is not giving any indication of the fact that the rug pull scam will continue to remain prevalent in 2022. But there is a danger that the criminals will try to use new technologies like DAOs, NFTs, and DeFi because the space is moving forward web3.
In the case of decentralized finance in 2021, this started using this platform to make attacks via rug pulls, which helped with the money laundering process. He also mentioned that the crypto bear market is not very likely to affect the rate or kind of crime. However, a financial recession or a major depression could cause enhancement of the criminal minds.
Considering economic markets and not just being confined to cryptocurrency, the depressions and receptions can increase criminal activity to a great extent. Also, in the last year, most of the law enforcement agencies across the globe had a great success rate. In November 2021, numerous investigations of the IRS made over 3.5 million dollars of cryptocurrency as far as non-tax investigations are concerned. Even then, the proportion of crime rate was lower, but 2021 was when cryptocurrency crime went up to its peak.
Law enforcement has been able to Mark numerous illegitimate addresses that have received 14 billion dollars in total over a single year, recorded by Chainalysis. In addition, numerous cryptocurrencies have been received by the digital wallet address incorporating fraudulent activities like ransomware, darknet markets, and scams. The good news is that the entire volume of deceptive activities is only 0.15 % of the entire transaction. Most of the newcomers are allured towards multiple profits from the investment, and the strict regulation is helping them transfer their funds without any fear of deception.