• Mon. May 20th, 2024

Criminal Element in Crypto Is Expected To Decrease By 30% in Next Two Years

Jan 18, 2022

Crypto investment has proven more than worthy since 2019. The value of each cryptocurrency is currently more than double what it was in 2020. However, since 2018, the criminal element in the industry has been rising which isn’t good from the investors’ perspective. Yet, there is a report authored by an advisory firm known as “Gartner”.

Gartner has been analyzing the criminal element prevailing in the crypto industry for a very long time. In its reporter, Gartner has duly acknowledged the fact that instead of reduction, criminal activities have been rising in the crypto industry. Instances of investment frauds, ransomware, hacks, etc. are not only excisted but are more threatening than ever before. However, the report of Gartner predicts a bright future for crypto with regard to criminal activities.

Gartner has suggested in its report that by 2024, i.e. two years later from now, crypto criminal activities will be reduced by 30%. In the estimation of Gartner, after two years, the existing and new blockchain networks will become technologically more advanced. Their security will be foolproof and so tight that it would be impossible for anyone to access them unauthorizedly. Most importantly, the networks will be so intricately connected with each other that criminals won’t be able to get away with funds. Similarly, the criminals will no longer be able to take out the funds from any blockchain network and transfer them to any non-blockchain network.

According to Gartner, the most effective protocol against criminal activities is the existence of ‘transparency’ within the blockchain networks. The advisory firm believes that it is transparency which is an ultimate deterrent against criminal activities in the crypto space. More transparency would enormously reduce criminal interest from blockchain networks. The firm stated further that currently, criminals think that crypto is providing a safe haven to them. However, they are forgetting that blockchain technology is currently the world’s most convenient technology for tracking money trails.

Gartner’s report is based analysis of 23 leading blockchain networks of the world that are carrying out 99% of global crypto transactions. The firm stresses that if all of these 23 networks employ fraud preventive mechanisms in blockchain, then there will be zero criminal activity. However, for doing that networks will have to take on board thousands of payment networks, which requires hectic efforts.

Another important aspect that can play a crucial role in preventing such criminal activities is the implementation of the KYC policy. According to Gartner, there are only a handful of crypto exchanges that are actually following the policy and implementing its standards. The identification requirements for crypto transactions will further reduce the number of crypto criminal activities. If KYC is implemented efficiently then criminals would be forced to use networks other than blockchain for moving proceeds of crimes.

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