2022 Will Witness Fewer Crypto Crimes: Chain Analysis

The year 2021 witnessed global crypto expansion, but several cases of crypto-related crimes came along that put the industry in a bad light. The criminal use of cryptocurrencies will decline around the world as more governments learn to take advantage of the uncensored transparency that blockchain provides, a new report claims. Blockchain is the underlying technology that supports cryptocurrencies. In its research, research firm Chainalysis said the growth in legitimate use of cryptocurrencies is “far outpacing the growth in criminal use”.

Cryptocurrency-based crime hit a new record in 2021, with illegal addresses receiving $14 billion (approximately Rs. 103,768 crore) during the year, up from $7.8 billion (approximately Rs. 57,813 crore) in 2020 .

“Across all cryptocurrencies tracked by Chainalysis, total transaction volume grew to $15.8 trillion (approximately Rs. 11,71,09,600 crore) in 2021, a 567 percent increase over 2020 totals, given that roaring adoption is it’s no surprise that more cybercriminals are using cryptocurrency. But the fact that the increase was only 79 percent — nearly an order of magnitude lower than general adoption — may come as the biggest surprise,” the statement said. report said.

Transactions with illegal addresses accounted for just 0.15 percent of cryptocurrency transaction volume in 2021.

Since crypto transactions are decentralized and untraceable in nature, several government agencies around the world have raised concerns about the illegal use of crypto assets. From money laundering to terrorist financing, the potential misuse of the crypto sector has contributed to its delayed legalization.

The report further highlighted that law enforcement agencies have stepped up their efforts to stop and stop the exploitation of the cryptocurrencies by criminals.

For example, in November 2021, the US-based Internal Revenue Service (IRS) Criminal Investigations had: announced that it had seized more than $3.5 billion worth of cryptocurrency by 2021 — all from non-tax investigations. The number represented 93 percent of all funds seized by the division during that period.

Anyway, the cryptocurrency market soared to $3 trillion (about Rs. 2,15,66,720 crore) in 2021, the highest it has been to date.

In a report last year, Chainalysis had revealed that crypto-related scams have received more than $7.7 billion (approximately Rs. 58,697 crore) from investors in 2021.

Last year, the most common form of scam was the classic carpet-drawing business, which this year took in more than $2.8 billion (approximately Rs. 21,333 crore) in cryptocurrency from victims.

Interested in cryptocurrencies? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon music and wherever you get your podcasts from.

Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risks. The information contained in the article is not intended as financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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