Post by account_disabled on Mar 7, 2024 3:26:06 GMT
The idea that cryptocurrencies are for criminals largely dates back to the first news that appeared in the media about cryptocurrencies, specifically around the Silk Road market.
But the truth is that cryptocurrencies are a legitimate tool for daily transactions and other uses, and their users are mostly ordinary people.
Data from Chainalysis, an independent company that provides blockchain data and analysis used by government and law enforcement, shows that illicit activity accounted for only about 0.15% of cryptocurrency transactions in 2021.
According to the UN, in the traditional fiat space, between $800 billion and $2 trillion (approximately 2-5% of global GDP) is laundered each year. On the other hand, the data indicates that cryptocurrencies represent a tiny 0.03% of that figure.
Our goal is to analyze some of the most common narratives that promote FUD (fear, uncertainty and doubt) in the cryptocurrency sector and separate fact from fiction.
In recent years, we have witnessed a Ecuador Mobile Number List real boom in the world of cryptocurrencies and blockchain. However, ignorance of this technology has given rise to a series of false beliefs and misconceptions, which has caused many people to approach digital assets with unjustified distrust and uncertainty. To combat this, we have set out to offer Web3 training that is accessible to everyone and we strive to make people better aware of cryptocurrencies.
Through these efforts, we aim to debunk common misconceptions and promote greater understanding of the world of cryptocurrencies. Our goal is to clear up confusion and help the general public better understand cryptocurrencies. Knowing the basics and thinking critically is essential as this will help people better understand and ultimately use cryptocurrencies. It's time to bust some cryptocurrency myths!
Myth: only criminals use cryptocurrencies
The use of cryptocurrencies for illegal activities has been a cause of concern since the inception of this new form of digital currency. The public perception that cryptocurrencies are intrinsically linked to criminal activities (such as money laundering, drug trafficking or cybercrime) largely dates back to the first news that appeared in the media about cryptocurrencies, specifically around the infamous Silk Road market.
Silk Road was an online black market that operated on the dark web from 2011 to 2013 and offered a platform for the anonymous buying and selling of illegal goods and services using Bitcoin. The market was famous for its involvement in drug trafficking, and the association between cryptocurrencies and the illicit activities of the Silk Road contributed to cryptocurrencies' poor reputation in the mainstream media.
The perceived anonymity and decentralization of cryptocurrencies have raised concerns that they facilitate criminal activities. Many media outlets often choose to focus on high-profile cases of cryptocurrency-related crime, promoting the idea that digital assets are primarily used by individuals seeking to engage in illegal activities without detection.
Data shows that cryptocurrency users are mostly ordinary people
The reality is that cryptocurrencies are a legitimate tool for carrying out a variety of daily transactions, and their users are mostly ordinary people. There are more than 120 million registered users on Binance alone. As with any emerging (or existing) technology, criminals will always use it for malicious purposes. That said, in 2011 illicit activity only accounted for about 0.15% of cryptocurrency transactions (up from 0.62% in 2020 despite the sector's exponential growth) and money laundering accounted for 0.05%. .
And don't just take our word for it. This is data from Chainalysis , an independent blockchain analysis company. Chainalysis data is commonly used by government agencies, including the United States Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Internal Revenue Service Criminal Investigation Division (IRS CI), as well as such as the UK National Crime Agency (NCA), to investigate and combat cryptocurrency-related crimes.
In the traditional fiat sector, between $800 billion and $2 trillion is laundered each year, representing around 2-5% of global GDP, according to data from the United Nations Office on Drugs and Crime ( UNODC ). If we compare that to the cryptocurrency sector, the amount is a tiny 0.03% of that figure. Criminals don't like cryptocurrencies because since transactions are publicly and permanently recorded, that actually helps investigators. In fact, unlike traditional financial investigations, the transparent nature of cryptocurrencies makes it easier to identify cybercriminals.
Criminals don't like transparency
The blockchain is transparent by nature. All transaction data is recorded in a public ledger and anyone can examine the entire codebase at any time. Using cryptocurrencies for malicious purposes leaves an excellent paper trail for prosecutors to sign a conviction.
Europol and the Basel Governance Institute have stated that cryptocurrencies are key to combating organized crime, since it is not possible to move large amounts of money without attracting attention. In fact, cryptocurrency exchanges remain one of the main allies in the fight against criminal activities. For example, in 2021, Binance helped take down a cybercriminal network that was laundering $500 million in ransomware attacks.
Police authorities continue to lead the collective fight against crime. Acquiring the necessary skills, tools and resources, as well as collaborating closely with cryptocurrency companies, has been a top priority for authorities globally. In the US, the Treasury Department has requested more funding to track and combat cryptocurrency-related crimes, and the Department of Justice and the FBI have created national task forces dedicated to cryptocurrencies.
In addition, the Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing, has published rules for virtual assets similar to those already established for fiat money. However, their implementation has lagged: of the 200 countries that have committed to the FATF standards, only 19 have implemented the standards for virtual assets (as of March 2023).
Conclusion
The idea that cryptocurrencies are a breeding ground for illicit activities is greatly exaggerated. In fact, the vast majority of cryptocurrency transactions and investments are legitimate and focus on real uses with the potential to transform the global economy. The emergence of blockchain technology has opened up new opportunities for financial innovation, and cryptocurrencies are just one aspect of this rapidly evolving landscape.
From decentralized finance (DeFi) to non-fungible tokens (NFT), the potential applications of cryptocurrency and blockchain technology are wide and varied. We've only scratched the surface of what's possible. While there are undoubtedly risks and challenges, it is important to approach this exciting new technology with an open mind and a willingness to learn and adapt to make the most of its potential for positive impact. We should also have the right barriers in place to try to crack down on cybercriminals, something no financial services ecosystem is immune to.
Fact: Cryptocurrency users are mostly ordinary people. There is independent data showing that only 0.15% of cryptocurrency transactions are related to any illicit activity. If you are a criminal, you are more likely to be caught using cryptocurrency than if you use cash or the traditional financial system.
But the truth is that cryptocurrencies are a legitimate tool for daily transactions and other uses, and their users are mostly ordinary people.
Data from Chainalysis, an independent company that provides blockchain data and analysis used by government and law enforcement, shows that illicit activity accounted for only about 0.15% of cryptocurrency transactions in 2021.
According to the UN, in the traditional fiat space, between $800 billion and $2 trillion (approximately 2-5% of global GDP) is laundered each year. On the other hand, the data indicates that cryptocurrencies represent a tiny 0.03% of that figure.
Our goal is to analyze some of the most common narratives that promote FUD (fear, uncertainty and doubt) in the cryptocurrency sector and separate fact from fiction.
In recent years, we have witnessed a Ecuador Mobile Number List real boom in the world of cryptocurrencies and blockchain. However, ignorance of this technology has given rise to a series of false beliefs and misconceptions, which has caused many people to approach digital assets with unjustified distrust and uncertainty. To combat this, we have set out to offer Web3 training that is accessible to everyone and we strive to make people better aware of cryptocurrencies.
Through these efforts, we aim to debunk common misconceptions and promote greater understanding of the world of cryptocurrencies. Our goal is to clear up confusion and help the general public better understand cryptocurrencies. Knowing the basics and thinking critically is essential as this will help people better understand and ultimately use cryptocurrencies. It's time to bust some cryptocurrency myths!
Myth: only criminals use cryptocurrencies
The use of cryptocurrencies for illegal activities has been a cause of concern since the inception of this new form of digital currency. The public perception that cryptocurrencies are intrinsically linked to criminal activities (such as money laundering, drug trafficking or cybercrime) largely dates back to the first news that appeared in the media about cryptocurrencies, specifically around the infamous Silk Road market.
Silk Road was an online black market that operated on the dark web from 2011 to 2013 and offered a platform for the anonymous buying and selling of illegal goods and services using Bitcoin. The market was famous for its involvement in drug trafficking, and the association between cryptocurrencies and the illicit activities of the Silk Road contributed to cryptocurrencies' poor reputation in the mainstream media.
The perceived anonymity and decentralization of cryptocurrencies have raised concerns that they facilitate criminal activities. Many media outlets often choose to focus on high-profile cases of cryptocurrency-related crime, promoting the idea that digital assets are primarily used by individuals seeking to engage in illegal activities without detection.
Data shows that cryptocurrency users are mostly ordinary people
The reality is that cryptocurrencies are a legitimate tool for carrying out a variety of daily transactions, and their users are mostly ordinary people. There are more than 120 million registered users on Binance alone. As with any emerging (or existing) technology, criminals will always use it for malicious purposes. That said, in 2011 illicit activity only accounted for about 0.15% of cryptocurrency transactions (up from 0.62% in 2020 despite the sector's exponential growth) and money laundering accounted for 0.05%. .
And don't just take our word for it. This is data from Chainalysis , an independent blockchain analysis company. Chainalysis data is commonly used by government agencies, including the United States Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Internal Revenue Service Criminal Investigation Division (IRS CI), as well as such as the UK National Crime Agency (NCA), to investigate and combat cryptocurrency-related crimes.
In the traditional fiat sector, between $800 billion and $2 trillion is laundered each year, representing around 2-5% of global GDP, according to data from the United Nations Office on Drugs and Crime ( UNODC ). If we compare that to the cryptocurrency sector, the amount is a tiny 0.03% of that figure. Criminals don't like cryptocurrencies because since transactions are publicly and permanently recorded, that actually helps investigators. In fact, unlike traditional financial investigations, the transparent nature of cryptocurrencies makes it easier to identify cybercriminals.
Criminals don't like transparency
The blockchain is transparent by nature. All transaction data is recorded in a public ledger and anyone can examine the entire codebase at any time. Using cryptocurrencies for malicious purposes leaves an excellent paper trail for prosecutors to sign a conviction.
Europol and the Basel Governance Institute have stated that cryptocurrencies are key to combating organized crime, since it is not possible to move large amounts of money without attracting attention. In fact, cryptocurrency exchanges remain one of the main allies in the fight against criminal activities. For example, in 2021, Binance helped take down a cybercriminal network that was laundering $500 million in ransomware attacks.
Police authorities continue to lead the collective fight against crime. Acquiring the necessary skills, tools and resources, as well as collaborating closely with cryptocurrency companies, has been a top priority for authorities globally. In the US, the Treasury Department has requested more funding to track and combat cryptocurrency-related crimes, and the Department of Justice and the FBI have created national task forces dedicated to cryptocurrencies.
In addition, the Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing, has published rules for virtual assets similar to those already established for fiat money. However, their implementation has lagged: of the 200 countries that have committed to the FATF standards, only 19 have implemented the standards for virtual assets (as of March 2023).
Conclusion
The idea that cryptocurrencies are a breeding ground for illicit activities is greatly exaggerated. In fact, the vast majority of cryptocurrency transactions and investments are legitimate and focus on real uses with the potential to transform the global economy. The emergence of blockchain technology has opened up new opportunities for financial innovation, and cryptocurrencies are just one aspect of this rapidly evolving landscape.
From decentralized finance (DeFi) to non-fungible tokens (NFT), the potential applications of cryptocurrency and blockchain technology are wide and varied. We've only scratched the surface of what's possible. While there are undoubtedly risks and challenges, it is important to approach this exciting new technology with an open mind and a willingness to learn and adapt to make the most of its potential for positive impact. We should also have the right barriers in place to try to crack down on cybercriminals, something no financial services ecosystem is immune to.
Fact: Cryptocurrency users are mostly ordinary people. There is independent data showing that only 0.15% of cryptocurrency transactions are related to any illicit activity. If you are a criminal, you are more likely to be caught using cryptocurrency than if you use cash or the traditional financial system.