Out of $1 Trillion In Crypto Transactions, Only 1.1% Were Used In Illicit Activities: Chainalysis

  • Less than 1% of the total cryptocurrency transactions sets in 2019 proved illicit activities, Chainalysis reports.
  • Centralized exchanges remain the top crypto destination for new accounts and new crypto entering the market.

According to the Chainalysis report on March 5th, over $1.01 trillion USD in cryptocurrencies were transferred in 2019, setting an all-time high. While the crypto field has heavily been blamed for promoting illicit activities and terrorism across the world, the fears may be exaggerated as less than 1% of these transactions were actually illicit, centralized crypto exchanges taking the bulk of the transactions.

The huge value of transactions comes in light of the increasing adoption of blockchain wallets. Over the last four quarters, the recorded number of blockchain wallet users soared from 34.66 million wallets in Q1 2019 to over 44 million at the end of the year.

A cleaner cryptocurrency market

At the start of the cryptocurrency frenzy, a huge percentage of the wallets were used for illicit purposes and to circumvent government rules. The rise of darknet markets accepting Bitcoin (BTC) soared as the industry came to light.

However, as adoption and regulation starts to become stricter, the field has seen fewer darknet markets, according to the Chainalysis report. Earlier in the year, the cybersecurity firm reported only 0.08% of total crypto transactions to originate from darknet markets. This shows that cryptocurrency is maturing and becoming cleaner as illicit activities die out.

Exchanges, cybersecurity firms, and government authorities have come together to clamp down on hackers, illegal activities and money laundering across the industry.

Exchanges collect over 58% of the newly mined BTC

Centralized exchanges have become the favorite avenue for users to stash their mined cryptocurrencies, as they look for profits to keep on their activities. According to the report, centralized exchanges currently receive 58.4% of the newly mined coins with mining pools receiving 15.1% and 12.7% landing on high-risk exchanges (unregulated).


Image: Coindesk

While the industry grows and more of the tokens pass through centralized exchanges, the value transacted for illicit activity will continue to drop given the tough AMLD and KYC regulations the crypto exchanges are subjected to.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today