The post Cash Not Crypto Remains Preferred Tool for Criminals: Report appeared on BitcoinEthereumNews.com.

In the debate over illicit finance, cryptocurrencies often bear the brunt of criticism despite cash being the preferred tool for criminals. A new report published by Homeland Security Investigations (HSI) Supervisory Special Agent Robert Whitaker and the Crypto ISAC states that regulated crypto platforms offer valuable support to law enforcement, utilizing blockchain’s transparency to combat crime and boost national security, despite lingering misconceptions about their role in illicit finance. Cash, Not Crypto, Remains the Criminals’ Preferred Tool The share of illicit activity within the total cryptocurrency transaction volume is remarkably small. According to the report, Merkle Science’s analysis shows that only 0.61% of USDT transactions between July 2021 and June 2024 were flagged as potentially illicit, while USDC fared even better, with just 0.22% flagged and less than 0.005% linked to sanctioned entities. Meanwhile, Chainalysis reported that illicit activities accounted for only 0.34% of total on-chain transactions in 2023, down from 0.42% in 2022. These figures are much lower than the estimated illicit activity in traditional finance, as highlighted by the Treasury’s 2024 National Money Laundering Risk Assessment. Both cryptocurrency and traditional finance (TradFi) systems face increasing regulatory scrutiny to combat illicit finance. However, they differ in their transparency. TradFi lacks the public blockchain technology that makes crypto transactions traceable. In traditional finance, law enforcement must obtain financial records from institutions, often requiring a grand jury subpoena. This process involves a panel of people and gathering substantial evidence before tracing funds can begin. Additionally, many illicit activities still rely on cash, which is untraceable. The 2024 DEA report confirms that cash remains the primary method for transactions in the drug trade due to its anonymity and lack of a paper trail. KYC or KYT? In the report, Agent Whitaker said that the traceability of transactions on a blockchain is a game-changer for law…

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Filed under: News - @ October 6, 2024 5:45 am