One of the misgivings critics have about cryptocurrencies is its supposed anonymousness which makes it a tool that could incentivize criminal activities.
The latest reports by Chain Analysis shows that this trend has not reduced. The analytical firm has been recording cryptocurrency use in dark web transactions and from its findings, the numbers have increased in 2019 and is on pace to set a record.
Bitcoin Still Number One On Darkweb
Bitcoin remains the major digital coin used for illicit transactions followed by Monero according to the report. The report says that BTC is accepted by most dark web vendors.
Despite this, there has been a reduction in the use of Bitcoin for illicit activities as it accounted for less than 1% of all transactions on the Darkweb. This is a sharp drop from 7% in 2018 which suggests that other cryptocurrencies have begun to gain acceptance.
Monero has increased in popularity among dark web vendors due to its privacy features. Monero being on the list is not surprising because of its strong anonymous features which benefits users who would not want to be tracked using blockchain analysis tools.
Monero is considered the king of privacy and anonymous blockchain transactions. Its privacy features ensure that it is near impossible to track the sender and receiver of transactions on its network. this is facilitated by its ring signature protocol which has placed the coin in the elite class among privacy digital currencies.
Tightening Regulations On Crypto
The increased number of criminal activities via cryptocurrency has been a cause for concern among regulatory agencies and law enforcement across the world.
There have been more regulations towards combating money laundering and terrorism financing via cryptocurrencies. This has resulted in the delisting of many coins that don’t pass regulatory checks by cryptocurrency exchanges.
Most illicit transactions on the Dark Web made with cryptocurrencies are used to pay for stolen credit card information, child porn, drugs and for the purpose of laundering currencies.
The Financial Action Task Force is already working on a regulatory framework that could combat criminal use of cryptocurrencies.