Crypto or Cash? The Terrible Truth Revealed by Criminals!

A new study reveals that only 0.3% of crypto transactions are reported as illicit, thus contradicting the popular belief that cryptocurrencies are primarily used for criminal activities. This report, published by the Crypto Information Sharing and Analysis Center (CryptoISAC) in collaboration with Merkle Science, highlights the increased security and transparency of crypto transactions compared to traditional financial systems.

Crypto: A Safer Transaction Method Than Expected?

Despite the rise in popularity of cryptocurrencies, criminals continue to prefer cash for their illicit transactions. According to the report, between 2% and 5% of the world’s GDP is laundered each year through traditional financial systems, which amounts to between 800 billion and 2 trillion dollars. In comparison, only 0.34% of crypto transaction volumes were reported as potentially illicit in 2023, a decrease from 0.42% in 2022.

One of the main advantages of cryptocurrencies is their transparency. Transactions made on the blockchain are immutable and public, allowing for increased traceability. Crypto exchanges in the United States are subject to strict regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) rules, making transaction anonymity more difficult.

Even stablecoins, often used to protect illicit gains from volatility, are rarely involved in illicit transactions. Between July 2021 and June 2024, only 0.61% of transactions involving Tether (USDT) and 0.22% of those involving Circle (USDC) were reported as potentially illicit.

International Collaboration and Security

The report also calls for international collaboration to mitigate national security concerns, as a significant portion of illegal cryptocurrency activities takes place on offshore platforms not subject to the same restrictions as those in the United States.

In summary, although cryptos have been stigmatized as tools for criminal activities, the data shows that they are actually less used for illicit transactions than traditional financial systems. This increased transparency and traceability might make cryptocurrencies a safer and more reliable transaction method in the future.