Record High: $20.1B in Illicit Crypto Transactions in 2022
• Illicit cryptocurrency transactions in 2022 totaled $20.1 billion, a $2 billion increase from 2021.
• This is the highest amount ever recorded in criminal transactions involving digital currencies.
• Chainalysis‘ recent study found that the total value received by entities associated with cybercrime activities in 2022 was approximately 18x that of 2017.
Cryptocurrency has been a hot topic in the financial world, with its use growing rapidly over the past several years. While the use of digital assets has generally been seen as a positive development, there is a dark side to the rise of digital currencies as well. Illicit cryptocurrency transactions, which involve the use of digital assets for criminal activities, have been on the rise in recent years.
According to a new report from Chainalysis, a blockchain analytics firm, illicit cryptocurrency transactions in 2022 totaled $20.1 billion, a $2 billion increase from 2021. This is the highest amount ever recorded in criminal transactions involving digital currencies, and the total value received by entities associated with cybercrime activities was approximately 18x that of 2017.
While the exact reasons for the rise of illicit cryptocurrency transactions are not clear, some experts believe that the increased use of digital assets and the lack of regulation in some countries have enabled criminals to take advantage of the situation. Another factor that could be playing a role is the growing number of crypto exchanges, which provide criminals with a wide range of options for moving funds.
The report also highlighted the activities of darknet markets, which are websites that allow users to buy and sell illegal goods and services. Darknet markets accounted for the largest share of illicit cryptocurrency transactions, with $2.3 billion in transactions in 2022. This was followed by ransomware, which accounted for $1.8 billion in transactions, and fraud, which accounted for $1.3 billion in transactions.
The report from Chainalysis comes as governments around the world are trying to crack down on illicit cryptocurrency transactions. In the United States, the Financial Crimes Enforcement Network (FinCEN) has proposed new regulations that would require financial institutions to report suspicious activities related to digital currencies. At the same time, the European Union is also considering new legislation that would impose stricter regulations on digital assets.
The increase in illicit cryptocurrency transactions highlights the need for greater regulation in the industry. Without proper regulations, criminals will continue to take advantage of the anonymity and ease of use of digital currencies. It is therefore important for governments to take the necessary steps to ensure that the use of digital assets is safe and secure.