Less than 1% of all Bitcoin transactions are criminal in origin, says a report that studies illegal transactions conducted on the blockchain.
A UK based cyber security firm Elliptic, that specializes in creating tools to identify criminality associated with blockchain related transactions, has released a report investigating the global Bitcoin market with a focus on money laundering.
The findings of the report say that results somewhat surprisingly find that the much-hyped criminal elements involved in Bitcoin appear excessively small, with an amount even less than 1% of all Bitcoin transactions. Another surprising fact revealed in the report was that illegal Bitcoin transactions were again excessively made to European sources.
The research report shows the fraction of all trades that consist of illegal payments here, emphasizing how the figure has fallen from just over 1% in 2013:
The study days that there is relatively a very small portion of ‘dirty bitocins’ going into conversion services. During the last four years nly 0.61 percent of the money entering conversion services were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.
In regards to the global distribution of illegal trades, it was found that even though only a quarter of total trades were made in Europe, they accounted for a much higher proportion of illegal activity:
Roughly a quarter of all incoming transactions went into Europe in 2015 and 2016, but 38 percent and 57 percent of all illegal trades, respectively, went to European services during those years. Thus, Europe hosted a unequal amount of illegal actions.
Findings of the report are surely beneficial for the reputation of Bitcoin and a sigh of relief for its investors. The terms of how illegal digital currency can be measured may be unclear, yet after the myriad of Bitcoin ransom ware attacks, such as Wannacry, making the headlines, there are channels of illegal transaction that can be followed.
Identifying money laundering and crimes associated with the funding of terrorism are sure to be a focus for investigators, but evidence presented in the Elliptic’s report suggests that Bitcoin criminality would appear to have been exaggerated.
What do you think about Elliptic’s findings? Let us know what you think in the comments below.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share