Chainalysis Report: Stablecoins Make Up Majority of Illicit Transaction Volume
While it’s notable that stablecoins are gaining traction , a new report from blockchain analytics firm Chainalysis has found that stablecoins are frequently used for money laundering .
Kim Grauer, Director of Research at Chainalysis, told Cryptonews.com that crypto-native money laundering occurs when an on-chain wallet is associated with criminal activities.
“Exchange heists, crypto scams, and darknet market proceeds are on-chain money laundering examples, rather than off-chain activity like narcotics trafficking and fraud,” Grauer said.
“Because this flow of activity, from the placement stage to the conversion stage, occurs entirely on-chain, we refer to it as crypto-native money laundering.”
Chainalysis’ “Money Laundering and Cryptocurrency” report points out that an increasing portion of illicit funds passing through intermediary wallets are represented by stablecoins. This is consistent with Chainalysis’ previous findings that stablecoins now account for the majority of all illicit transaction volume .
Our Money Laundering report reveals how bad actors now use crypto to launder funds from off-chain crimes — not just crypto-native crimes like ransomware. We explore advanced tracing techniques and how blockchain data is leading the fight against fincrime.https://t.co/32ApuphHpU
— Chainalysis (@chainalysis) July 11, 2024
According to Grauer, there isn’t a direct link between stablecoins and illicit activity. However, Chainalysis’ report notes that, “both good and bad actors often prefer to hold funds in an asset with a value that will not change based on swings in the market.”
The increasing rise of stablecoins for money laundering may also be due to non-crypto native criminals using cryptocurrency more frequently.
Read more on cryptonews.com
