Cash More Popular with Criminals Than Crypto

A recent report highlights that cash far surpasses cryptocurrency in global illegal activity, countering crypto's early reputation, notably from the Silk Road era.

In 2024, criminal use of crypto remains minimal.

The report, published by the Crypto Information Sharing and Analysis Center (ISAC), emphasizes that cryptocurrencies are valuable assets for law-abiding individuals.

Despite early scepticism, the report underscores that cash remains the preferred medium for illicit operations, reinforcing the potential of crypto in legitimate sectors.

Co-author Robert Whitaker claimed:

“Cash will always be king. [Crypto] is law enforcement friendly in the sense that it has an immutable ledger behind it that is public. Cash is much more difficult to trace.”

Increased Crypto Regulations Caused Criminals to Turn to Fiat

Crypto ISAC reports that cash is frequently used in highly sophisticated money laundering schemes and other crimes at significantly higher rates than cryptocurrencies.

Even the most notable cases of crypto-related crime, such as sanctions evasion, pale in comparison to the scale of similar offenses involving cash.

This disparity can be attributed to the increasing regulations surrounding cryptocurrencies.

The report emphasizes that public, immutable ledgers make crypto a less appealing avenue for illicit activities.

Additionally, regulations such as Know Your Transaction (KYT) laws transform exchange data into a valuable asset for law enforcement.

The substantial reduction in crypto-related crime over recent years serves as compelling evidence of this trend.

Cooperation Necessary to Reduce Crypto-Related Crime

The report issues a compelling call to action aimed at further reducing criminal activities involving cryptocurrencies.

Crypto ISAC advocates for the establishment of robust global compliance standards, which would make it increasingly difficult for criminal enterprises to find safe havens.

The report concluded:

“To create the safest environment possible, there needs to be international collaboration with regulators, law enforcement, and responsible players within the crypto industry. They must work together in developing standards and best practices to address and prevent illicit activities. It is only through… collaboration that the industry will remain one step ahead.”