Bitcoin’s use in illegal online marketplaces peddling everything from drugs to child porn is on pace to set a record this year at more than $1 billion, according to a report by Chainalysis.
About $515 million of the digital coin has already been spent this year on the so-called dark web, according to the firm, which helps companies such as cryptocurrency exchanges investigate and prevent illegal transactions. Dark-net spending in Bitcoin peaked in 2017, at $872 million, and declined last year as the coin’s price took a dramatic dive.
The findings are a reminder of the regulatory risks surrounding the digital tokens. Last month, the Financial Action Task Force — an inter-governmental organization focused on combating money laundering and terrorist financing — began mandating strict know-your-customer measures for crypto exchanges and custodians.
