Why Criminals Prefer Cash Over Crypto in 2024?

According to Fortune, a new report claims that cash is used much more than crypto in illegal activity worldwide. Crypto got an early unsavory reputation from the Silk Road, but crime numbers are tiny in 2024.

The report’s authors have stated emphatically that crypto is a valuable asset to law-abiding society.

Crypto: An Asset for Crime?

Crypto Information Sharing and Analysis Center (ISAC), a nonprofit that focuses on crypto asset ecosystem security, released a report on crime in the space. Specifically, despite the industry’s early reputation as a hub of illegal activity, the report claims that cash is much more popular in illicit operations.

“Cash will always be king. [Crypto] is law enforcement friendly in the sense that it has an immutable ledger behind it that is public. Cash is much more difficult to trace,” co-author Robert Whitaker, claimed in an interview.

Read More: Crypto vs. Banking: Which Is a Smarter Choice?

This conclusion supports previous data from the industry about an overall decline in crypto’s use in crime. Crypto ISAC aimed to take a comprehensive look at the history of this trend as a means of convincing policymakers, advocacy groups, etc, that blockchain technology is a valuable tool for law-abiding society.

Any look at the history of crime in crypto will have to start with the Silk Road. By the time the site was shut down in 2013, nearly 20% of all Bitcoin transactions went through it. Obviously, this infamous incident is a strong contributor to the space’s early unsavory reputation.

However, Crypto ISAC adds that cash is used for extremely sophisticated methods of money laundering and similar crimes at much higher rates. Even the most publicized instances of crypto-related crime, like sanctions evasion, are minuscule compared to these same crimes committed with cash. A key reason for this is the increased regulations around crypto.

The report is emphatic that public, immutable ledgers make cryptocurrencies an inhospitable venue for illegal transactions. Further, regulations like Know Your Transaction (KYT) laws turn exchange data into a valuable resource for law enforcement. As proof, Crypto ISAC points to the huge decrease in crypto crime over the past few years.

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

Ultimately, the report ends with a call to action, identifying ways to decrease criminal crypto transactions even further. Crypto ISAC suggests focusing on global compliance standards, making safe havens for crime harder to come by.

“To create the safest environment possible, there needs to be international collaboration with regulators, law enforcement, and responsible players within the crypto industry. They must work together in developing standards and best practices to address and prevent illicit activities. It is only through… collaboration that the industry will remain one step ahead,” the report finished.