Why will criminals choose cash over crypto in 2024?

According to Fortune, cash is more widely used in illegal activity globally than crypto. Crypto got an early unpleasant reputation from the Silk Road, but crime numbers are minuscule in 2024.

The authors of the report emphasized that crypto is a valuable asset to a law-abiding community.

Crypto: Criminal Assets?

The Crypto Information Sharing and Analysis Center (ISAC), a nonprofit that focuses on the security of the crypto-asset ecosystem, has released a report on crime in the space. In particular, the report found that while the industry is known to be a hub for illegal activity, money is the most prominent part of illegal activity.

“Cash will always be king. [Crypto] Law enforcement is ideal in the sense that the unchanging ledger behind it is for the public. It's harder to find cash,” co-author Robert Whittaker said in an interview.

Read more: Crypto vs. Banking: Which is the Smarter Choice?

This conclusion supports previous data from the industry regarding the overall decline in the use of crypto in crime. Crypto ISAC aims to take a deep look at the history of this trend to convince policy makers, advocacy groups, etc. that blockchain technology is a valuable tool for a law-abiding society.

Any look at the history of crime in crypto must start with the Silk Road. In the year By the time the site was shut down in 2013, about 20% of all Bitcoin transactions had gone through it. Clearly, this embarrassing incident strongly contributed to the place's early bad reputation.

However, Crypto ISAC added that cash is highly sophisticated money laundering schemes and similar crimes are being used on a large scale. Even the most notorious crypto-related crimes, such as sanctions evasion, pale in comparison to similar crimes committed in cash. The main reason for this is the increased regulations around crypto.

The report emphasized that public and immutable ledgers make cryptocurrencies a fertile ground for illegal transactions. Additionally, Know Your Transaction (KYT) laws make exchange data a valuable resource for law enforcement. As evidence, Crypto ISAC indicates that crypto crime has decreased significantly over the past few years.

Read more: Crypto Regulation: What are the Pros and Cons?

Finally, the report concludes with a call to action, identifying ways to further reduce criminal crypto transactions. Crypto ISAC suggests focusing on global compliance requirements.

“To create the safest possible environment, global cooperation is needed with regulators, law enforcement and responsible players in the crypto industry working together to develop standards and best practices to address and prevent illegal activities. The industry can only be one step ahead with… cooperation,” he said. The report is complete.