According to analysts from Chainalysis, cryptocurrency has become much less likely to participate in illegal activities.
The use of cryptocurrency for criminal purposes was halved in 2019 compared with the previous year, analysts from Chainalysis found out. According to them, over the past six months, about 1% of the total issue of coins have participated in illegal activities, according to Bloomberg.
The reason for this dynamic is related to the tightening of control over the digital money market and the strong volatility of the asset. According to Chainalysis CEO Hannah Curtis, criminals have become more active in using Fiat to hide their actions.
Earlier, Bitcoin was used in criminal circles to conduct shadow business or conduct criminal transactions. Law enforcement agencies could not track the transaction, so the attackers remained unpunished. Now the exchanges have to cooperate with the government, so the criminals are returning to Fiat again,
In 2012, more than 7% of all Bitcoin transactions were related to crime. Every year, this ratio decreases as the cryptocurrency market develops.
In June 2019, the Bank of Russia reported that fraudsters very rarely withdraw funds in cryptocurrency. More often, criminals simply cash out the stolen items.