- According to the study, the cryptocurrency industry, banks, and governments stand far divided on the risks involved in the crypto market
- Among all, 70% of the respondents from governance bodies and crypto industries agreed that criminal activities are a significant concern
- Past reports from analysis firms like Chainalysis reflects that only 1% of the crypto assets are used for the crimes
Cryptocurrencies, when emerged in the world in 2008 they slowly, acquired a significant part of the market. It is usually projected as the most secure, decentralized and money of the future. Unfortunately, this perception often leads to neglection of the significant security issues.
A recent joint survey by Royal United Services Institute (RUSI) and Association of Anti-Money Laundering Specialists have revealed a similar result. According to the study, the cryptocurrency industry, banks, and governments stand far divided on the risks involved in the crypto market. The survey was hosted among 566 unique bodies from the cryptocurrency industry, various exchanges, government financial regulators and intelligence units, on the one hand, where the crypto industry showed immense confidence in their tools and the ecosystem. On the other hand, governmental bodies showed severe concerns for the same.
Government and Financial Bodies Stance
Among all, 70% of the respondents from governance bodies and crypto industries agreed that criminal activities are a significant concern. When quizzed about pointing to specific areas of problems, 84% told towards money-laundering on the dark-web, 83% said illicit goods procurement by sanctioned actors, 79% for organizations, 76% for human trafficking and 75% for fraudulent ICOs.
From the Authors of the Survey
Research Analyst at Centre for Financial Crime and Security (RUSI), Kayla Izenman who is also the co-author of the survey. He commented that while the crypto-industry seems rigid and confidence on the abilities to detect risks. But it seems the government is equally concerned about the same. Executive Director of ACAMS, Rick Mcdonell said that the two sides government and the crypto industries provide unique insights and for compelling framework viewpoint of both sides shall be noted while forming regulatory laws. The upcoming rules by the European Union on the cryptocurrencies in 2024 will play a significant role in this outcome.
Past reports from analysis firms like Chainalysis reflects that only 1% of the crypto assets are used for the crimes. But the incidents of the al Qaeda raising funds via cryptocurrencies, the famous twitter hack of last month or even the crimes and fraudulent activities making to the news daily are enough for one to re-think on the above numbers by Chainalysis.
Survey also revealed that the Asian market is more welcoming towards the cryptocurrencies. As per the results, 42% of the people said prefer cryptocurrencies over fiat. While there may be a difference of opinion among the survey respondents, but they all still agreed that a rise in crypto day-to-day payments in the coming five years.
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