"The Use of cryptocurrencies in illicit activities and its mitigation"

Assalam O Alaikum

Hello dear friends! Welcome to my post. How are you all? I hope you will be doing well by the grace of Almighty. I'm also fine and enjoying my day. Today I'm here to share my knowledge with you about the topic "The Use of cryptocurrencies in illicit activities and its mitigation" in this Steem Alliance community. So let's start without any more delay of time.

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Friends, as we all know that landscape of cryptocurrencies is very vast as their benefits are found in different sectors of our lives including the finance and other digital platforms. This is because, they provide us a way of validating transactions seamlessly and quickly from one wallet to another digital wallet, across the borders.

Here, besides all these advantages, the use of cryptocurrencies in illicit activities is also very common in digital landscape, which cause numerous challenges. This is because, the digital currencies provide anonymity due to the presence of blockchain and decentralized technology which helps the people to validate transaction anonymously.

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Many of illicit activities in the landscape of cryptocurrencies has raised a lot of questions about their privacy and reliability because they are creating significant challenges for the people. Among the illicit activities, money laundering, rasomware attacks and trafficking are very common. And with the help of them, the hackers play with the assets of people.

Many of major digital currencies including the Bitcoin and monero are attracting the criminals to validate their transactions, without revealing their information and in the most anonymous way. In the past few years, all these illegal activities are become more common in digital platforms. Many of the schemes are used to perform illicit activities through cryptocurrencies.

Among all of them, the money laundering is the most common way to illicit activity which can be done very easily through the digital currencies. This is because, the cryptocurrencies provide a great level of anonymity through which the people can validate their transactions by transferring their from cross borders without revealing the information about these transactions.

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At one aspect, it is considered as a very easy way to transfer black money from one country to another. After receiving that money, they can turn it to white money by converting it into their native currencies. All these transactions remains hidden from the public's eye due to the presence of anonymous feature of digital currencies.

Furthermore, the rise of privacy coins as boosted such illicit activities in digital platforms because they provide a great level of anonymity which create significant challenges for regularity bodies of one's country to trace such transactions. Among them, the monero has made that process more complicated due to presence of anonymous feature which make the transaction totally non traceable.

After the money laundering, the ransomware attacks also have a significant role in the illicit activities which can be done through the digital currencies. This is because, through them the people can hack others wallets, steal their assets and important information and then in return demand a high amount of money to refund them or encrypted data.

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Since, the rise of illicit activities within the crypto, the regularity bodies and governmental policies are launching different measures and protocols to reduce such activities and also to eliminate them permanently from the digital platforms to make them secure and reliable for every individual. In this regard, several steps they can take to reduce them.

And among them, the KYC and AML is the most important and prominent way to control such activity. This is because, in KYC and AML, we have to provide our basic information regarding I'd card number, country of residence and many other to dive into digital platforms. So after providing that type of information, we get verified and can take a part in further activities.

Conclusion

In conclusion, we can say that the crypto space is very vast, and the presence of such illicit activities is very common but to control them is also very crucial so that the people can trust them and perform their desired activities within the digital platforms. So by implanting KYC verification, AML and many other digital tools they can mitigate such activities permanently from the platform and make them neat and clean.

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Written by @abdullahw2

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