Since Bitcoin’s inception, many crypto aficionados have worked to dissociate their favorite digital coin from the notion that it may be used for illegal activity. Mainstream media have often described bitcoin as being used by criminals such as for money laundering and purchasing drugs and other illicit goods.
In August 2018, Lilita Infante of the DEA first reported seeing Bitcoin in her cases in 2013. At the time, illegal activity comprised of 90 percent of transactions in cryptocurrency. Today, however, that number has dropped significantly–with illegal activity only accounting for 10 percent of cryptocurrency transactions.
Despite the 80 percent drop in criminal transactions, illegal uses have surged. The volume has grown tremendously, the amount of transactions and the dollar value has grown tremendously over the years in criminal activity, but the ratio has decreased. The majority of transactions are used for price speculation.
Caleb Chen, a digital currency advocate at Private Internet Access spoke about the same to Blockpublisher. He said:
“Governments are still waiting for a solid “example” regulatory framework to magically appear. Smaller countries and state entities have been most willing to experiment with this new technology and give it a chance. There are examples of overly restrictive regulatory frameworks, such as the BitLicense from NY, and there are examples of more considerate frameworks such as those in Bermuda. Once these smaller countries have succeeded, larger countries will draft better and better regulatory frameworks… theoretically. The danger is if a large country or financial entity takes a hard negative stance. But nowadays, even they have opened up to the “underlying” blockchain technology because even centralized entities can benefit from the advance of decentralized technology.”
However, once governments start to regulate well. Many countries across the world already clamping down on the ecosystem.
The problem is that governments are just slow and inefficient to comprehend such a groundbreaking technology.