The illicit transaction of cryptocurrency recorded an all-time high in 2022 and reached $20.1 billion, Chainalysis, a blockchain analytics company informed. Chainalysis, in its latest report published on January 12, 2023, revealed that the cryptocurrency market struggled as 0.24% of last year’s volume was linked to the crime. “Data monitoring systems that allow tracking any sort of fluctuations are one of the best ways to protect against digital asset crime. These monitoring systems are enabled with the help of artificial intelligence (AI) which performs robust scanning actions to properly secure the data stream,” Bharat Patel, Chairman, and Director, Yudiz Solutions, a blockchain development company told FE Blockchain.
Currently, the total value of $20.1 billion slightly exceeds the measure in 2021 ($18 billion) by 10%.
Meanwhile, cryptocurrency regulators increased calls for greater consumer protection due to significant losses suffered by investors. Industry experts noted that to make cryptocurrency trading platforms more secure, there needs to be true decentralisation of power within the system. “Identity can be a crucial aspect. Let people know your customer (KYC)-ed and hold them responsible for their actions,” Swapnil Pawar, founder, Newrl, blockchain platform, claimed.
Market analysts believed that there are blockchain-based smart wallets and contracts being developed that run on hash codes. “They are highly effective as some features do not allow the alteration of data in any case,” Karan Ambwani, India lead, dYdX foundation, a decentralised trading platform, said.