It should be noted that Europol has previously commented on the topic of cryptocurrencies. In particular, in January 2020, they confirmed that transactions in the Monero network are indeed untraceable. Consequently, it would not be possible to disclose the parties involved in transfers in this blockchain.

Monero (XMR) mining

That said, other cryptocurrencies are generally not a problem for the various agencies. Last spring, former CIA chief Michael Morell argued that the Bitcoin network is inconvenient for criminals because of its openness and transparency, which makes it possible to find the source of each transaction. However, some criminals may not realise this, as digital assets are still relatively new.

Now, the issue of the uncomfortable use of cryptocurrencies for illegal activities has been raised again by law enforcement.

How do criminals use cryptocurrencies?

According to speakers at the event, which included representatives from law enforcement, cryptocurrency exchange Binance, as well as platforms Chainalysis, CypherTrace and TRM Labs, the use of cryptocurrencies is growing “in virtually every country and sector”, contributing to the popularisation of new forms of crime. These include drug trafficking, match-fixing, financing arms flows and so on, Decrypt reports.

The situation is also complicated by the fact that there are experienced criminals in the crypto industry who are involved in money laundering. They can conceal the financial flows of both physical and cyber crimes. This is all thanks to blockchain, although its technical features also work against the perpetrators themselves. Speakers of the conference noted that public blockchains provide law enforcement agencies with unique opportunities in the fight against organised crime, i.e. in essence, representatives of such organisations benefit from the availability of distributed data registry technology.

Photo from the conference

According to Europol, those involved in the fight against crime, i.e. law enforcement and regulatory authorities, as well as the private sector, are “working hard to stay ahead of those who abuse crypto-assets to commit crime and launder money. The organisation also expects new European regulations on the crypto market to put cryptocurrencies on an equal footing with traditional assets when it comes to controlling organised crime and money laundering.

Read also: FBI warns of serious DeFi-protocol vulnerabilities. What should crypto investors do?

The importance of the crypto market in Europe is recognised even at the level of the International Monetary Fund. Cryptocurrencies are no longer just a “niche phenomenon” and are now actively used as speculative investment vehicles, hedging instruments against “weak” currencies and payment instruments, according to a recent report by the organization’s experts. Instability in the crypto market, in the form of the collapse of large crypto projects and the bankruptcy of some funds, has only increased the industry’s desire for regulation.

Volume of financial transactions for different types of crypto-related crimes

However, developing a regulatory framework for crypto-assets is no easy task. Among the biggest obstacles to its implementation are the rapid growth of the industry, the complexity of monitoring and the lack of necessary skills among regulators. Here is a relevant quote from experts.

Regulators are struggling to acquire the talents and skills to keep up, given limited resources and a host of other priorities.

Share of criminal transactions in total cryptocurrency transfers by year

According to Cointelegraph sources, the report’s authors also highlighted the inconsistent approach of various regulators in regulating cryptocurrencies, advocating for a coordinated, unified and comprehensive global cryptocurrency regulatory system. Here’s a quote.

Some regulators may prioritise consumer protection, while others may prioritise security and sustainability or financial integrity. In addition, there are a number of players in the crypto market – miners, validators, protocol developers. They are all not easily covered by traditional financial regulation.

Increase in stolen funds across different areas of the crypto market from 2020 to 2021

In other words, regulators simply have “no time to keep up” with innovation. Given the speed at which the crypto market is evolving, this is not surprising – an entire industry can emerge and significantly lose popularity in just one bull cycle in the digital asset industry. A prime example of this is unique tokens (NFTs). A year ago they were on everyone’s radar, but now their popularity outside of the industry has dropped significantly. However, as soon as the digital asset industry moves back to the growth stage, NFTs will surely start breaking their own popularity records again.


Obviously, such statements will benefit the digital asset industry. Firstly, its perception by ordinary people will be less radical because of the generally positive comments made by representatives of the world-renowned organisation. Secondly, fraudsters may also reconsider their attitude towards coins and get rid of the idea of using them in their business. So for the cryptocurrency industry as a whole, such statements are a positive thing - especially after lingering criticism from various bankers and officials.


What will come of all this? Stay tuned for more developments in our Millionaires Cryptochat. There we discuss other important developments related to the blockchain and decentralisation industry.