- Illicit cryptocurrency activities evolve, with stablecoins dominating 63% of criminal transactions in 2024.
- MiCA regulations set a global precedent for structured oversight of digital assets.
The year 2025 marked a great year in the global cryptocurrency landscape, characterized by a significant surge in adoption and innovation.
However, this surge in mainstream acceptance has also brought an alarming rise in illicit activities tied to the digital currency ecosystem.
Growing Illicit activities using crypto
According to a recent report by Chainalysis, the total value received by illicit cryptocurrency addresses decreased to $40.9 billion in 2024.
However, the dynamics of on-chain criminal activity are shifting. Stablecoins have overtaken Bitcoin [BTC] as the preferred choice for illicit transactions, accounting for 63% of all such activity.
This trend reflects a broader growth in stablecoin adoption, with total activity rising by 77% year over year.
Despite the reduction in value received by criminal addresses, projections from Chainalysis estimate illicit cryptocurrency volumes could climb to $51.3 billion this year.
This uptick follows a year of recovery for the cryptocurrency sector in 2023. That year saw significant declines in scamming and hacking revenues—down by 29.2% and 54.3%, respectively—after the turbulence of 2022.
Steps taken by the European Parliament
Responding to these challenges, the European Parliament enacted robust measures to curb money laundering and illicit activities in the digital asset space. This sets a precedent for global regulatory efforts.
The recently introduced Markets in Crypto-Assets (MiCA) regulations represent a significant step in the European Union’s efforts to oversee digital assets and their markets.
Gaining overwhelming support in the European Parliament with 479 votes in favor, these rules primarily target Crypto-Asset Service Providers (CASPs), including centralized exchanges.
MiCA scales back certain contentious proposals, such as capping self-custody payments and applying anti-money laundering (AML) requirements to decentralized autonomous organizations (DAOs) and DeFi platforms.
By aligning closely with existing regulatory frameworks, MiCA sets a precedent for structured oversight while signaling a potential blueprint for other nations aiming to regulate the crypto sector effectively.
Adding to the fray…
That being said, the United Arab Emirates (UAE) has also emerged as a global leader in cryptocurrency by implementing well-defined regulatory frameworks.
The nation has achieved a level of leadership that contrasts sharply with the regulatory challenges faced by other nations, such as the United States.
Moreover, the UAE’s strategic emphasis on stablecoins underscores its commitment to fostering financial stability in the often unpredictable cryptocurrency market.
Trump and crypto’s future
As the countdown to President Donald Trump’s second inauguration continues, the cryptocurrency market braces for potential volatility. It remains to be seen whether Trump will introduce reforms or regulations to curb illegal activities using crypto.
Nonetheless, speculation abounds over Bitcoin’s ability to hold the critical $88k level. This could dictate the market’s trajectory, either paving the way for a rebound or triggering a sharp sell-off.
Meanwhile, the hype of high-return investments in tokens like Pepeto [PEPETO], Dogecoin [DOGE], and Ripple [XRP] is capturing investor interest.
However, amidst this optimism, the absence of a robust regulatory framework raises concerns, particularly with stablecoins being frequent targets for illicit activities.
This underscores the pressing need for balanced regulations to ensure market stability amidst innovation.
