Reassuring news from DEA as they announce an 80% drop in virtual currency criminal activity since 2013

The US Drug Enforcement Agency (DEA) has made a statement that the role of BTC in crimes has dropped to a mere 10% of transactions despite the number of transactions growing exponentially.

Special Agent Lilita Infante, a member of the Cyber Investigative Task Force noted that the number of legitimate BTC transactions was now significantly more than the number of illegitimate ones- a situation that is reversed when compared to just five years ago.

“The volume has grown tremendously, the amount of transactions and the dollar value has grown tremendously over the years in criminal activity, but the ratio has decreased.”

The argument that BTC and other cryptocurrencies can be used by criminals to conduct illicit activities has often be used by harsh critics of the technology, but it seems that this does not hold the weight that it once did. Regulators have also cracked down hard on any possible usage of cryptocurrency for illicit purposes such as money laundering or terrorist financing.

As the popularity of BTC grows, most of the activity that surrounds it is, in fact, legitimate trading such as price speculation. Whilst privacy-focused digital currencies are a lot less liquid than Bitcoin and can be more anonymous in nature, the DEA still has ways of tracking them.

“The blockchain actually gives us a lot of tools to be able to identify people. I actually want them to keep using them [cryptocurrencies].’’

During a recent US Public House meeting on digital assets and virtual currencies, Managing Partner and Andreesse Horowitz, Scott Kupor stated that;

The blockchain actually gives us a lot of tools to be able to identify people. I actually want them to keep using them (cryptocurrencies).

This news is a huge boost for the industry as well as providing an argument to counteract the naysayers that have been critical of the technology for these reasons.

 

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