Criminal Activity regarding cryptocurrency hit a record high in 2021 at 79.4 per cent compared to 2020.
In the crypto market, illegal crypto activities like crypto laundering and user scamming were the highest crime last year, accounting for over half of the illicit transactions.
There were other crypto crimes including financing of terrorism, cybercriminals administration, ransomware, and money laundering for child abuse activity which witnessed a spark rise last year.
The International Monetary Fund in its Global Financial Stability report warned about the increased criminal activity in the crypto space which highlighted the risk of crypto transactions to the global economy.
As per the IMF report, the major challenges with cryptocurrencies are cyber-risks that expose users to hacking and loss of their assets, which “involve the lack of transparency around issuance and distribution of crypto assets”.
Last year, an American cryptocurrency market research firm Chainalysis mentioned that the highest risk areas in crypto crime were North Korea, Russia, and Iran whereas in East Africa there were no notable crypto crimes reported.
“As cryptocurrency persists to rise, it is compulsory that the public and private sectors work concurrently to assure that transaction is secure for the users and that criminals can’t manipulate these unexplored assets,” the Chainalysis report stated.