Cryptocurrency is often associated with criminal activity, but this is mostly a myth, especially today. Bitcoin and other cryptocurrencies don’t provide complete anonymity due to the Know-Your-Customer (KYC) policies implemented by most crypto exchanges. Even without KYC scanning, law enforcement agencies can easily track crypto transactions to identify criminal activity, as the blockchain is transparent and immutable. In 2019, United States Treasury Secretary Steven Mnuchin said that Bitcoin was a national security issue, since it had been used for illicit activities. To him, cryptocurrencies were dominated by illegal activities and speculation. But the facts say otherwise. Though illicit crypto volumes reached an all-time high at $20.6 billion in 2022 (primarily due to sanctioned entities), the share of all crypto activity linked with illegal activity was only 0.24%. This pales in comparison to the $800 billion–$2 trillion laundered through traditional financial systems in fiat — about 2% to 5% of the global GDP. One of blockchain’s defining features is its inherent transparency. All transactions are logged on a publicly accessible ledger, allowing anyone to view the entire codebase at any time. Utilizing cryptocurrencies for illicit activities leaves a clear trail of evidence that prosecutors can use to secure convictions. Europol and the Basel Institute on Governance have emphasized the importance of cryptocurrencies in combating organized crime. It is virtually impossible to transfer significant amounts of crypto without getting noticed.
Full analysis : Debunking the myth: Cryptocurrency is used for criminal activity.
