Australian review shows drop in illicit purchases with Bitcoin

The research paper named “Sex, Drugs and bitcoin”, published by Sean Foley, Talis Putnins and Jonathan Karlsen tracked the illegal activity all the way back to 2009
01 December 2017   676

According to the recent research by Australian experts illegal activities performed with the use of Bitcoin, while dropped, still constitutes the third of all the transaction taking place worldwide. All the data points to the fact that the illegal activities peaked in 2014 and have been decreasing ever since. From the total of 106 million users only 34 to 36 million perform operations which involve the purchases in “darknet” and other nefarious activities. Foley stated, that it wasn't unexpected, because practically all the market had been established by pushing the legal limits, but the real evolution begins only when the regulators step in to clean up the perpetrators and put down the new rules.

This research paper will be a stepping stone to further examination of current digital currency trends, because it involved revolutionary analysis methods. Foley, Putnins and Karlsen had to develop new analytic models to reference recent Bitcoin seizures by authorities to real users. While Bitcoin is prised for its anonymity, the 33-character “name” still can be tied back to the end user because all the relevant information is stored in the blockchain. The next logical step was to create a detection algorithm based on the notable characteristics of nefarious activity taken from the sample of known users, involved in illegal proceedings. All this information is then used to estimate and infer other users, involved in the illegal activity.

The research is designed to help authorities adequately understand the amount of work needed to regulate the alternative currencies as an asset being quickly adopted by the ever-increasing amount of people in the world.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   128

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.