Increasing the volume of Bitcoin trading in the dark network

The first quarter of 2020 ended with a 65% increase in the volume of Bitcoin trading in the dark network, compared to the first quarter of last year.

This was revealed in a recent report by Crystal Blockchain, which focused on the use of BTC by entities operating on the dark network or through mixers.

In fact, it was a smaller number of BTC, but a larger volume of their counter-value in US dollars.

In fact, the total amount received by the dark nets decreased from 64,000 BTC in the first quarter of 2019 to 47,000 BTC in the first quarter of 2020, and the total amount sent by the dark nets decreased from 64,000 BTC to 50 000 BTC.

Taking into account the volumes in US dollars, the amount went from $ 384 million to $ 411 million.

The report explains that the reason is not only in increasing the value of Bitcoin against the dollar, but is a process of mass acceptance of the flagship cryptocurrency as a means of transferring value, thanks to the ease and growing popularity of BTC.

In addition, the average size of stock exchange transactions has decreased, and this seems to indicate a decrease in use for criminal activities or in dark networks in favor of anonymity services such as mixers.

Crypto in the dark network

The volume of Bitcoin sent between entities operating in dark networks has also increased, but the explanation may lie in the fact that users of these spaces can use this type of transaction to hide their flow of BTC from illegal activities.

Based on these data, Crystal Blockchain concludes that Bitcoin continues to be a financial instrument used by organizations working on dark networks, in particular for the online sale of drugs or other illegal goods.

There is a real battle between the exchanges, which are trying to identify these dubiously paid BTC, and the users of dark networks, who are trying to avoid recognition.

In particular, the latter have begun to prefer the services of mixers to money exchange exchanges.

Crystal Blockchain reveals that, thanks to special analytical tools, these activities are relatively easy to identify and monitor, while the increasingly stringent regulations issued by the FATF and the European Union play a clear role in combating these illegal activities.