[2018-1-19] NEW STUDY FINDS < 1% OF BITCOIN TRANSACTIONS TO EXCHANGES ILLICIT

[casparthefriendly]

A new report that analyzes illicit transactions conducted on the blockchain has determined that less than 1% of all Bitcoin transactions are criminal in origin.

Elliptic, a UK based cybersecurity firm specialized in creating tools to identify criminality associated with blockchain related transactions, has released a report analyzing the global Bitcoin market with a focus on money laundering.

The results somewhat surprisingly find that the much-hyped criminal elements involved in Bitcoin appear disproportionately small, amounting to less than 1% of all Bitcoin transactions. Another surprising fact discovered in the report was that illicit Bitcoin transactions were again disproportionately made to European sources.

THE REPORT
Our new report with @FDD gives policymakers, regulators and law enforcement insight into how bitcoins from darknet markets, #Ransomware and other illicit sources are laundered: https://t.co/CCqNmZCdCq pic.twitter.com/EqFK5kcUhO

— elliptic (@elliptic) January 16, 2018

The research paper identifies the fraction of all transactions that consist of illicit payments here, emphasizing how the figure has fallen from just over 1% in 2013:

According to our study, the total percentage of identified ‘dirty bitcoins’ going into conversion services was relatively small. Only 0.61 percent of the money entering conversion services during the four years analyzed were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.

In regards to the global distribution of illicit transactions, it was found that even though only a quarter of total transactions were made in Europe, they accounted for a much higher percentage of illicit activity:

Roughly a quarter of all incoming transactions went into Europe in 2015 and 2016, but 38 percent and 57 percent of all illicit transactions, respectively, went to European services during those years. Thus, Europe hosted a disproportionate amount of illicit activity.

THE FINDINGS
Equifax Hackers Demand a $2.3 million Bitcoin Ransom ‘Or Else’

The report’s findings are sure to benefit the reputation of Bitcoin, at least in terms of actual facts. The terms of how illicit money can be measured may be ambiguous, however, after the myriad of Bitcoin ransomware attacks, such as Wannacry, making the headlines, there are channels of illicit transaction that can be followed.

Identifying money laundering and crimes associated with the funding of terrorism are sure to be a focus for investigators, but evidence presented in the Elliptic’s report suggests that Bitcoin criminality would appear to have been exaggerated.


http://bitcoinist.com/study-identifies-less-than-1-of-bitcoin-transactions-to-exchanges-are-illicit/

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[Coin-Keeper]

This report doesn't even remotely surprise me.  I have a lifetime of considering CASH in the same analogous way.  Obviously we read about and have heard of crimes where fiat is used as the payment.  Duhhhh!  But the entire population here carries CASH not for illegal things, its for convenience and buying things without always having "Big Brother" knowing too much.  How is BTC much different?  All tools (BTC is a tool) can be used for good or evil.  Stop blaming the tool!

[Slow death]

Elliptic, a UK based cybersecurity firm specialized in creating tools to identify criminality associated with blockchain related transactions, has released a report analyzing the global Bitcoin market with a focus on money laundering.

it would be very good if many news channels published this news and it would also be great if more companies did research of this type, the advantages would be enormous for bitcoin as this will help to change the mind of some governments that every day are accusing bitcoin use arguments unconvincing.

Identifying money laundering and crimes associated with the funding of terrorism are sure to be a focus for investigators, but evidence presented in the Elliptic’s report suggests that Bitcoin criminality would appear to have been exaggerated.

this will continue to be a big problem because these terrorist groups will always find something to facilitate their work and honestly I do not understand why these terrorists commit crimes.

[CyberKuro]

This report doesn't even remotely surprise me.  I have a lifetime of considering CASH in the same analogous way.  Obviously we read about and have heard of crimes where fiat is used as the payment.  Duhhhh!  But the entire population here carries CASH not for illegal things, its for convenience and buying things without always having "Big Brother" knowing too much.  How is BTC much different?  All tools (BTC is a tool) can be used for good or evil.  Stop blaming the tool!

Cash always be the most anonymous way to transact everything, even if you buy a burger on a roadside, then paying with cash, no one knows about it but just both parties who involved in the transaction. The same thing applied to criminal transactions, easy and instant transaction. Bitcoin isn't the best option at all, it's pseudonymous and every transaction recorded on blockchain, the hard thing is to make it liquid, people have to go through exchanges to do it which require id verification and you can't just withdraw so much many at once or financial authority will suspend your bank account. Moreover, there are some altcoins which is better than bitcoin that has higher fees compared than most altcoins, there is monero or zcash which is anonymous.

[squatter]

The research paper identifies the fraction of all transactions that consist of illicit payments here, emphasizing how the figure has fallen from just over 1% in 2013:

According to our study, the total percentage of identified ‘dirty bitcoins’ going into conversion services was relatively small. Only 0.61 percent of the money entering conversion services during the four years analyzed were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.

By "conversion services" do they mean mixers? I wonder what their margin of error is here, i.e. what does "verifiably" mean? I'd be surprised if < 1% of all coins entering mixers were from illicit sources. They're not free to use.

I find this tidbit interesting. I wonder what implications (if any) this could have for European regulations:

Roughly a quarter of all incoming transactions went into Europe in 2015 and 2016, but 38 percent and 57 percent of all illicit transactions, respectively, went to European services during those years. Thus, Europe hosted a disproportionate amount of illicit activity.

But the entire population here carries CASH not for illegal things, its for convenience and buying things without always having "Big Brother" knowing too much.  How is BTC much different?  

BTC is different because it's not very anonymous. It would be more private if not for the overwhelming use of third party trackers, timestamping and harmful data retention practices. As it is, there are clustering attacks where your wallet can be deanonymized and tracked fairly easily if you've ever interfaced with merchants or payment processors like Bitpay. And that's before considering techniques that exploit IP address.

[1Referee]

there is monero

I have always found this to be the perfect crypto currency for deep web markets, and basically any other entity with malicious intent. In most cases people thinking that Bitcoin is anonymous lack actual understanding of the technical aspects of Bitcoin. I remember a case where a drug dealer was busted for exchanging his Bitcoins at an exchange he was verified at with all his personal information. That's pretty much one of these ignorant idiots thinking that Bitcoin offers them an ultimate form of anonymity, which isn't the case at al, so seriously, how stupid can one be. You would expect drug dealers to be very cautious with everything they do, but their ignorance has got the better of them apparantly.