The expansion of crypto market is visible to people across the world leading to an extent number of adoption by a number of companies and countries. With the growth of crypto market, a number of deceptions and scams are being increased and Chainalysis think expansion in regulation and enforcement can deduct crypto crimes.
‘’State of Crypto Crime’’, a report recently published by Chainalysis, shows a comparison of crypto illicit activities between 2018 and 2019. According to the report, while the amount of bitcoin sent from total criminal entities doubled between 2018 and the end of 2019, it still accounts for just 0.08 percent of the total number of bitcoin transaction last year. Consumer protection and safety was at stake because of successive exchange hacks, thefts and scams which made the regulators and involved parties think about it and take step of it.
Reportedly, overall scams accounted for $8.6 billion in crypto transactions, criminal activity including hacks and thefts totaled just under $12.5 billion. Total amount spent in crypto has been disproportionately weighed down and these illicit activities include child abuse, outright theft, terrorism financing, ransomware and darknet market. With an eye to solving the problem exchanges should work with Chainalysis from foot to foot.
Chainalysis paid their view that strong regulation and action by crypto exchanges can be a good solution to the problem indeed. Exchanges should work for expansion of their activities to provide security to their consumers. Exchanges are very close to their consumers as a result they can prevent scamming with strong hand. They should analyze their efforts and find out limitations and fulfillments techniques.
Chainalysis is also working closely to resolve the issue saying while money laundering in the fiat world might require court-issued subpoena to tackle. They want to help investigators analyze transactions recorded on public ledgers. Now it’s a time to assume what change is going to be happened and how it will work.