Report Finds Only 1% of Digital Asset Transactions are for Criminal Purposes

 

 

 

Consumers around the world conducted more than one trillion dollars in cryptocurrency transactions last year, according to new research from Chainanalysis. As FxStreet reports, however, only one percent of those transactions involved illegal activities.

The research suggests that criminal usage of digital currencies for illicit schemes has been declining, even as the number of people using cryptocurrency has increased. That drop in illicit use runs contrary to many policymakers’ claims that digital assets are primarily used for illegal purposes.

Still, Chainanalysis noted that centralized digital currency exchanges continue to be vulnerable to hacking attacks and security breaches. Those vulnerabilities continue to pose obstacles to more widespread adoption of digital currency technology. According to the report, exchanges have been doing more on an industry-wide level to coordinate with law enforcement and provide better security for the broader cryptocurrency ecosystem.

The report suggests that the digital asset industry is in a much healthier place than it was a decade ago when mist transactions were conducted in questionable online darknet environments.

 

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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