The world of cryptocurrency has grown enormously in recent years. Unfortunately, the world of crypto crime has also increased considerably. Criminals like to use new technologies. Yet they seem to increasingly understand that blockchain is not the best friend if you have nefarious plans. Europol investigated.
Fewer criminals use crypto
This is what Europol discovered in their investigation called 'The other side of the coin'. This 58-page study takes an in-depth look at various forms of fraud, such as phishing, hacking, tax fraud and money laundering. Cryptocurrencies and blockchain also play a role in this world, but they represent only 1% of all transactions. This immediately disproves the idea that criminals love crypto. It appears that most criminals continue to use the mainstream financial system, albeit in a covert manner.
What's even more remarkable is that crypto also seems to be becoming less and less popular among criminals. The crypto market downturn in 2022 led to a decline in crypto scams. Criminals involved in crypto fraud saw their chances of making big profits becoming smaller and smaller.
Governments have also worked hard to combat crime in the crypto sector. Most blockchains are transparent. With the right data, you can see how cryptocurrency moves through the underworld. This is partly due to mandatory identity verification on crypto exchanges. Even individual wallet addresses will soon have to be reported if you want to use crypto exchanges.
This makes it difficult for offenders to use cryptocurrency for illegal purposes. According to Europol, this has already had an effect, although they do not provide exact figures.
Crypto crime still exists
Although Interpol mentions a decrease, it is not clear how large that decrease is. There is still crime in the crypto world, and some sources even claim that it is growing. In early 2023, there was significantly less criminal activity in crypto than the year before, but it now appears to be slowly increasing again.
Let's face it: Despite the downtrend in the market, there is optimism to be found among experienced crypto investors and experts. Many believe that the crypto market is cyclical and that, despite the current decline, a long-term increase is a real possibility.
The current world situation also plays a crucial role in the future of cryptocurrency. Factors such as financial uncertainty, inflation and technological advancements influence how people view digital assets as an alternative form of investment and financial freedom.
Crypto has the potential to bring a lot of good, but we must ensure that it is used responsibly and ethically. Governments and agencies around the world are working together to ensure the integrity of the crypto market and combat criminal activities.
And if you have fallen victim to a crypto scam or need to conduct a crypto investigation for some other reason, this is where Strongwood comes into the picture. If you ever have doubts about the provenance or reliability of certain cryptocurrencies or transactions, we can help. Our crypto research service is designed to provide you with reliable information and help you navigate the complex world of cryptocurrency.
