- Illicit cryptocurrency activities are evolving, with stablecoins dominating 63% of criminal transactions in 2024.
- The MiCA regulations set a global precedent for structured monitoring of digital assets.
The year 2025 was a big year in the global cryptocurrency landscape, characterized by a significant increase in adoption and innovation.
However, this growing mainstream acceptance has also led to an alarming increase in illicit activities related to the digital currency ecosystem.
Growing Illicit Activities Using Crypto
According to a recent report from Chainalysis, the total value received by illicit cryptocurrency addresses has decreased to $40.9 billion in 2024.
However, the dynamics of chain criminal activity are changing. Stablecoins have overtaken Bitcoin (BTC) as the preferred choice for illicit transactions, accounting for 63% of all such activity.
This trend reflects broader growth in stablecoin adoption, with total activity up 77% year-over-year.
Despite the reduction in value received by criminal addresses, Chainalysis projections estimate that illicit cryptocurrency volumes could climb to $51.3 billion this year.
This rise follows a year of recovery for the cryptocurrency sector in 2023. That year saw a significant decline in scam and hacking revenues – down 29.2% and 54.3%, respectively – after the turbulence of 2022.
Actions taken by the European Parliament
In response to these challenges, the European Parliament has adopted robust measures to combat money laundering and illicit activities in the area of digital assets. This sets a precedent for global regulatory efforts.
The recently introduced MiCA (Markets in Crypto-Assets) regulation represents an important step in the European Union’s efforts to supervise digital assets and their markets.
Enjoying 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 some controversial proposals, such as capping self-custody payments and applying anti-money laundering (AML) requirements to decentralized autonomous organizations (DAOs) and DeFi platforms.
By closely aligning with existing regulatory frameworks, MiCA sets a precedent for structured oversight while signaling a potential model for other countries to effectively regulate the crypto sector.
Adding to the fray…
That being said, the United Arab Emirates (UAE) has also become a global leader in cryptocurrency through the implementation of well-defined regulatory frameworks.
The country has achieved a level of leadership that stands in stark contrast to the regulatory challenges faced by other countries, such as the United States.
Additionally, the UAE’s strategic focus on stablecoins underscores its commitment to fostering financial stability in the often unpredictable cryptocurrency market.
Trump and the future of crypto
As the countdown to President Donald Trump’s second inauguration continues, the cryptocurrency market is bracing for potential volatility. It remains to be seen whether Trump will introduce reforms or regulations to combat illegal activities using crypto.
Nonetheless, speculation abounds about whether Bitcoin will be able to maintain the critical $88,000 level. This could dictate the market’s trajectory, paving the way for a rebound or triggering a sharp sell-off.
Meanwhile, the hype of high-yielding investments in tokens like Pepeto (PEPETO), Dogecoin (DOGE), and Ripple (XRP) is attracting investor interest.
However, amid this optimism, there are concerns about the lack of a robust regulatory framework, particularly as stablecoins are frequently targets of illicit activities.
This highlights the urgent need for balanced regulation to ensure market stability in a context of innovation.
