Not so practical cryptos – The use of cryptocurrencies for illicit purposes is a classic problem facing the industry. Criminals mistakenly believe that on-chain transactions will allow them to evade authorities.
Crypto: the blockchain to fly under the radar
Cryptocurrencies do not allow to go into stealth mode. During an interview granted to the media Kitco New at Future Blockchain Summit to Dubai, Michael Gromekexplained the reasons why criminals are wrong. They think they can use the blockchain to carry out illegal transactions with peace of mind.
As a reminder, Michael Gromek is the co-chairman of the committee Digital Asset Task Force of the Global Coalition to Fight Financial Crime. He recalled that “most suspects” who carry out on-chain transactions could “to be easily stalked”.
KYC data from crypto exchanges and the implementation of anti-money laundering regulations could be enough to identify criminals.
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The totally anonymous transaction, a myth?
Michael Gromek also breaks the myth of one totally anonymous crypto transaction. It uses private cryptocurrencies that the authorities would still be able to trace.
A little over two years ago, Chainalysis had also succeeded in implementing a method. The latter has challenged anonymity than cryptocurrencies Zcash et Dash were supposed to offer to its users.
However, some private cryptocurrencies, such as Monero (XMR), improved their system. They thus have reinforced the confidentiality of transactionsdespite growing pressure from regulators to be able to easily read the details of individual transfers on the blockchain.
By using private cryptocurrencies or mixers, such as Tornado Cashto erase their tracks, hackers unfortunately reinforce this Received idea according to which the transactions on chain are the best way to transfer millions of dollars from illegal activities, without getting caught.
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