The use of crypto and crypto transactions that have been deemed “high risk” or outright “illegal” has surged, according to a new report by blockchain analytics firm Chainalysis.
The report outlines how the Russian invasion of Ukraine has led to changes in crypto use patterns. According to Chainalysis, just 18.2% of all crypto transactions based in Eastern Europe are not associated with risky or illegal activity.
This means that high-risk crypto exchanges are on the move and experiencing a surge in volumes.
Most of these exchanges do not require KYC standards and allow many users to onboard without providing any paperwork.
This comes at a time when the European Union (EU) has passed a new sanctions package prohibiting Russian nationals from holding cryptocurrency assets on any exchange that has been registered in the EU.
Chainalysis admits that it’s not just Eastern Europe to blame, as there has been an upsurge in illegal cryptocurrency activity elsewhere as well.
Besides Eastern Europe, the company has seen illegal crypto-related activity in North America, Latin America, and especially sub-Saharan Africa, which continues to lead the way when it comes to illegal operations.
Chainalysis admits its data is a bit skewed, as it factors many high-risk activities, which could include online gambling or DeFi protocol.
Cryptocurrency gambling has been a known pastime for many, and this has attracted criminals as well.
But cryptocurrency casinos have been mostly known to do well by their customers and to apply the highest KYC and AML standards, assuring that their transactions are generally reliable.
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