Increased Crypto Crime is not Healthy for the Survival of Cryptocurrencies

In recent time, there has been an increase in court cases associated with individuals that committed crime against its government and the people using cryptocurrency. And, of course, a percentage of them are guilty of such crimes.

However, the quest for a permanent acceptance of cryptocurrency could be threatened by this due to the rise in the number of convicted persons. Some of the reasons why this is not healthy for the successful establishment of cryptocurrency in the world economy are:

1) It will create stringent measures for transactions with centralized exchanges. Although most of the cryptocurrency exchanges have subscribed to Know Your Customer (KYC) policies, the sudden rise in convicted crimes could make the exchanges reduce transaction limits, which will directly affect individuals who have legitimate reasons to transact on bigger volume of coins.

2) It will delay the issuing of licensing for trading of cryptocurrency futures. Even though about 8 cryptocurrency exchanges are able to obtain license and bitlicense from New York State Financial Agency, none of them have successfully received license for trading of bitcoin futures.

3) Reduction in usage of privacy coins. There is an increase in acceptance of privacy coins like Monero and Zcash with some exchanges like Liberalcoins, Gemini and Coinbase indicating interest in it. But, the rise in crypto-related crime could hinder growth in listings, as they are anonymous coins.

Contributed by: Nwaru Chukwuemeka

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