Bitcoin’s Use In Illegal Marketplaces Expected To Rise in 2019, Chainalysis Predicts $1 Billion Spent

  • Users will be spending around $1 billion this year on illegal marketplaces
  • There are regulatory agencies trying to reduce Bitcoin’s illegal use cases

Criminals are expected to be using Bitcoin (BTC) to make purchases in illegal online marketplaces as they have been doing during the last years.

According to a recent report released by Chainalysis, these purchases using the most popular digital asset in illegal marketplaces are going to set a new record this year at more than $1 billion.

Bitcoin Criminals To Spend $1 Billion On Dark Web

Although the proportion of Bitcoin transactions related to illegal purchases is falling, this year, more than $515 million has been used on the dark web, as reported by Chainalysis, a recognized firm that performs analysis of different blockchain networks. These purchases in online illegal marketplaces skyrocketed in 2017 due to the bull market and declined in 2018 during the bear trend that the crypto space experienced.

At the moment, there are several regulatory agencies around the world that are trying to control the market and help investors protect their funds against scams and fraudulent companies. For example, the Financial Action Task Force, an inter-governmental organization that focuses on fighting against money laundering and terrorist financing has been promoting different regulations for countries to adopt and follow.

As reported by Chainalysis, the biggest illegal online marketplace is called Hydra. The firm informed that the most purchased goods on these marketplaces are drugs. Other illegal goods and services can be acquired through these sites, as reported by Chainalysis.

In addition to it, the privacy-focused coin Monero (XMR) is also used on these illegal marketplaces. This virtual currency protects users’ information, including addresses and funds transacted.

Bitcoin transactions related to illegal activity accounted for less than 1% of all Bitcoin activity this year. This is very low considering that 7% of all Bitcoin transactions in 2012 were related to illegal activities.

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