Share of Illegal Bitcoin Transactions Declined to Less Than 1%

The proportion of bitcoin transactions tied to illicit deals is declining, according to blockchain research company Chainalysis.

Illegal activity has accounted for less than 1% of all bitcoin activity so far this year — down from 7% in 2012, Bloomberg reported, citing Hannah Curtis, senior product manager of data at Chainalysis.

However, bitcoin’s use in illegal online marketplaces is on pace to set a record this year at more than USD 1 billion, as about USD 515 million worth of bitocin has already been spent this year on the so-called dark web, the report added.

As reported in May, preliminary numbers, based on data gathered from twenty merchant service providers, show that in January 2019 more than BTC 32,300 were spent, or 47% more than in January 2018. The same preliminary data show that USD value of bitcoins received by merchant services in January dropped by 70%, as bitcoin price crashed last year more than 70%. Chainalysis estimates to have more precised data sometime this summer.

Meanwhile, in June, the Financial Action Task Force (FATF), a multi-government body that sets global standards relating to anti-money laundering and combating the financing of terrorism (AML/CFT), agreed to implement their previous recommendations that would force governments to tighten oversight of the crypto business.

“This will have a major impact on the cryptocurrency industry. FATF’s guidance represents the first major step toward global regulatory clarity. <…> Long-term, this regulatory guidance will formalize AML/CFT best practices and help the cryptocurrency industry mature and achieve more mainstream adoption,” according to Chainalysis.