Cryptocurrency has been around for more than 10 years. As of today, the market capitalisation of the digital asset market is almost $2.4 trillion, there are over 16,000 different coins in total that are traded on 447 exchanges in different countries.
These are impressive numbers as a new financial instrument, but still far from being the most visible part of the global economy's pie.
Despite this, the issue of cryptocurrency regulation remains problematic for many nations. Opponents of digital assets believe that the anonymity and decentralisation that blockchain technology provides allows cryptocurrencies to be used for criminal purposes.
Let's find out if this is actually the case, and which cryptocurrencies are considered the most popular among criminals. It's important to be careful and visit trusted sites, such as https://cryptocasinos360.com/dogecoin-casinos/, where more detailed opinions are given by analysts.
In May 2021, Coinbase published a list of the most common stereotypes and myths about cryptocurrencies, as well as facts that level them.
Among the propagators of these stereotypes was US Treasury Secretary Janet Yellen, who said that cryptocurrencies are used to launder the proceeds of online drug dealers and are also a tool to finance terrorism.
In fact, as of the end of 2020, illegal activity in the cryptocurrency community accounts for less than one per cent of all transactions. And between 2017 and 2020, the majority of economic crimes were committed using traditional financial instruments.
Another popular myth is that more crime occurs with cryptocurrency than with cash. However, according to the UN, every year fraudsters only launder $1.6 trillion in illicit funds. That's 66% of the market capitalisation of all cryptocurrencies.
Because of the decentralisation and anonymity that blockchain technology guarantees, some users may also believe that their cryptocurrency transactions cannot be traced.
But this is not the case, and cryptocurrency crimes are investigated by international security agencies just like any other economic crime.
For example, the FBI recently investigated the theft of 3,800 bitcoins that belonged to a Sony subsidiary. Digital assets worth the equivalent of $180 million were allegedly stolen by a company employee in May 2021.
Sony Life Insurance Company Ltd employee Rei Ishii was found guilty. Using the company's financial accounts, Ishii transferred $154 million to his California bank account. He then converted the money into bitcoins.
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In addition to US law enforcement officials, the National Police Agency of Japan, the Tokyo Metropolitan Police Department, the Office of the Japan Crimes Prosecutor, as well as representatives from Sony and Citibank were involved in the investigation.
"You cannot rely on cryptocurrency to hide your illegally obtained proceeds from law enforcement. The US is actively coordinating with international partners to prevent crime and recover stolen funds," said Acting US Attorney Randy Grossman.
The level of anonymity of its blockchain also plays a big role in the use of cryptocurrency by criminals.
Monero (XMR), based on the CryptoNote protocol, has long been considered the "king" of anonymity among cryptocurrencies. The creators of the project initially talked about the increased confidentiality of transactions through the use of circular signatures and hidden addresses.
As of today, Monero ranks 44th in the list of cryptocurrencies in terms of market capitalisation, with a value of $211.
Following Monero is Zcash, a once-successful cryptocurrency that has fallen significantly in value over the past few years. The Zerocash protocol, on which the cryptocurrency is based, is a more private alternative to bitcoin.
In 2017, Edward Snowden said that Zcash (ZEC) could compete with bitcoin, and Europol has officially expressed concern about the spread of the coin.
Among other "anonymous" coins, experts also highlight Dash (DASH), Horizen (ZEN), Verge (XVG) and Beam (BEAM). But all of them are far down the list of the most popular cryptocurrencies.
