A new report reveals that cash is still far more widely used in illegal activities than cryptocurrency, despite the early bad reputation that crypto gained as a “heist” or “hacker”. The Silk Road, a famous online black market, contributed to this negative view, but in 2024, the numbers show that crime involving cryptocurrency is quite small.

The authors of this report stress that cryptocurrency has a positive role to play in law-abiding communities.

The report, from the Crypto Information Sharing and Analysis Center (ISAC), a nonprofit organization focusing on the security of the crypto world, highlights that while cryptocurrency was once associated with crime, cash is now the preferred choice for illegal transactions.

According to Robert Whitaker, one of the report’s authors, “Cash will always be the go-to. Cryptocurrency, in contrast, can be more easily tracked because every transaction is recorded on a public ledger that cannot be changed. Cash, on the other hand, is much harder to trace.”

This finding is backed by earlier studies that show the decreasing use of crypto in criminal activity. The Crypto ISAC report seeks to encourage lawmakers and other important groups to see the benefits of blockchain technology for society.

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A Shift in Crime History

To understand how crypto gained its early bad reputation, you have to look at the Silk Road. Before it was shut down in 2013, about 20% of all Bitcoin transactions were linked to this illegal marketplace. This event strongly shaped the way people viewed crypto and crime back then.

However the report argues that cash is still much more commonly used in advanced methods of money laundering and other serious crimes. Even high-profile cases of crypto being used for criminal activities, such as bypassing sanctions, are minor compared to similar cash-related crimes. This is mainly due to the increasing regulations around cryptocurrencies.

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How Crypto Helps Law Enforcement

The report also explains how public records of cryptocurrency transactions make it difficult for criminals to hide. In fact, laws like Know Your Transaction (KYT) have made crypto exchange data useful for law enforcement agencies. This is part of the reason why criminal use of crypto has dropped significantly in recent years.

To further reduce illegal crypto transactions, the report calls for stronger global compliance standards, which would make it harder for criminals to find safe places to operate.