While legitimate users of crypto currency and their volume of transactions have also risen in the same period, the law enforcing authorities too will have to pull up their socks to combat cyber crimes emanating from the usage of crypto currency.
Statistically, the cyber crime rate owing to usage of crypto currency grew by a sharp 82% in the year 2021 over the previous year. The statistics being made available to our SIT also disclosed that it was the highest ever in terms of volume of illicit crypto transactions.
The figures cited for illicit crypto usage amounts almost five-fold, with the inclusion of USD 3.2 billion worth of crypto coins being stolen in 2021. The worrisome factor for most governments across the globe in permitting usage of crypto currency is the culpability of it facilitating money laundering that can lead to terror funds.
Our SIT was informed that in the event of continued growth of crypto crimes, it’s highly likely that governments worldwide will be forced to think on lines of imposing severe restrictions. This is more likely because a lot of innocent people will stand victimized owing to misuse of the ease in trading with crypto currency.
The crypto crimes fall under two categories, namely that of theft of crypto coins and creation of fictitious investment opportunities before disappearing with the investors’ funds. The second category being dubbed as “scams” was largely attributed to setting up of a fraudulent centralized exchange by name Thodex. It was reported that its CEO did a vanishing act from the public eye, soon after the exchange he had set up prevented investors from withdrawing their funds.
In short, in the long run, there needs to be a balance that can be set up between ease of transactions and regulations to control frauds.
Crypto crimes will rise with increase in legitimate usage
Avoiding crypto crimes needs a balancing regulatory act
Stolen crypto coins might leave innocent investors duped
There needs to be a vigil on the centralized exchange crypto uses
Increase in legitimate use also reported
Regulatory measures must strike balance
Vigil must be set up to protect investors
“Crypto currency usage per se is not a bad proposition. However, checks and balances must be in place like in any other mode of transaction to ensure averting frauds, thefts and scams”
Ramakant Gupta,
Financial advisor
