- Illicit cryptocurrency activities evolve, with stablecoins dominating 63% of criminal transactions in 2024.
- MiCA regulations set a global precedent for structured oversight of digital assets.
2025 proved to be an outstanding year for the worldwide cryptocurrency scene, with a notable increase in acceptance and advancement.
On the other hand, as digital currencies gain more widespread approval, there’s been a concerning increase in illegal actions associated with these digital currency systems.
Growing Illicit activities using crypto
Based on Chainalysis’ latest findings, the amount of money received by illegal cryptocurrency accounts shrank down to approximately $40.9 billion in the year 2024.
On the other hand, the nature of unlawful activities conducted on blockchains is evolving. Nowadays, stablecoins are more frequently used than Bitcoin (BTC) in these kinds of transactions, making up about 63% of all such illicit activities.
This upward trend signifies an expanding use of stablecoins, as the overall activity has increased by approximately 77% compared to the same period last year.
As an analyst, I’m projecting that despite a potential decrease in the value received by criminal entities, the estimated volume of illicit cryptocurrency transactions could reach an impressive $51.3 billion in 2022, according to Chainalysis projections.
2023 marked a period of growth for the cryptocurrency industry, building upon a year-long recovery from the previous year’s turmoil. In 2023, there was a substantial decrease in illicit activities such as scamming and hacking – with revenues falling by 29.2% and 54.3%, respectively.
Steps taken by the European Parliament
In response to these issues, the European Parliament implemented strong regulations aimed at preventing money laundering and illegal activities within the digital assets sector. This move paves the way for similar regulatory actions globally.
The new Markets in Crypto-Assets (MiCA) rules mark a substantial advancement in the European Union’s endeavor to govern the trading of digital assets and related markets.
With a resounding 479 affirmative votes in the European Parliament, these new regulations mainly focus on entities known as Crypto-Asset Service Providers (CASPs), which encompass centralized cryptocurrency exchanges.
The MiCA regulation softens some controversial points, including limiting self-held transactions and enforcing Anti-Money Laundering (AML) regulations on Decentralized Autonomous Organizations (DAOs) and Decentralized Finance (DeFi) platforms.
MiCA (Markets in Crypto-Assets) closely follows established regulations, paving the way for comprehensive supervision and serving as a possible model for countries seeking to efficiently regulate the cryptocurrency industry.
Adding to the fray…
Speaking as a researcher, I find myself drawn to the dynamic landscape of the global cryptocurrency sphere, particularly in relation to the United Arab Emirates (UAE). Remarkably, this region has risen to prominence due to its robust and meticulously crafted regulatory frameworks, positioning it as a leading pioneer in the digital currency arena.
The country stands out with its exceptional leadership, particularly when compared to the regulatory hurdles experienced by other countries, like the United States.
Additionally, the UAE’s focus on stablecoins demonstrates their dedication to maintaining financial security within the volatile and unpredictable realm of the cryptocurrency market.
Trump and crypto’s future
With each passing day bringing us closer to President Donald Trump’s possible second swearing-in, the digital currency market prepares itself for possible price fluctuations. It remains uncertain if Trump will propose changes or restrictions aimed at reducing unlawful activities in cryptocurrencies.
Despite numerous opinions about it, there’s much discussion about whether Bitcoin can maintain its position above the $88k mark. This decision could significantly influence the market’s direction, potentially leading to a recovery or causing a sudden drop in value.
Currently, there’s a lot of excitement surrounding high-profit opportunities in digital assets such as Pepeto [PEPETO], Dogecoin [DOGE], and Ripple [XRP]. This trend has piqued the curiosity of many investors.
Nevertheless, while there’s a sense of hope, the lack of a strong regulatory system creates unease, especially since stablecoins have been frequently associated with illegal activities.
Or:
Although we see optimism, the absence of a solid regulatory framework causes worry, particularly because stablecoins are often linked to illicit activities.
Emphasizing the urgent requirement for well-balanced rules to maintain market equilibrium, while fostering innovation.
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2025-01-16 17:39