Banning cryptocurrency to fight crime is a ridiculous excuse

Many governments have tried to ban cryptocurrencies, recent examples come from China, India, Turkey with NigeriaThe reason for this is simple: the decentralized nature of cryptocurrency poses a threat to the traditional financial system, and since the technology itself is still in its infancy, it seems to attract hackers. Even so, banning encryption will not discourage hackers or scammers in the least.

Hackers are still attracted by cryptocurrencies

Since the advent of cryptocurrency, hackers have shown a keen interest in this form of currency. The perceived attractiveness of anonymity when receiving payments creates an invincible halo for all cryptocurrencies. However, this is often misunderstood because in its current form, no public blockchain is private or anonymous. Although transactions on the blockchain are anonymous, users still need to convert to fiat currency at some point. These steps usually require verification of a person’s identity through official documents, negating the entire anonymity and privacy aspects.

related: 2011-2020 Crypto Exchange Hacking Report

Although most hackers admit that cryptocurrencies lack privacy and anonymity, the overall crime rate is still relatively high.Although significant Decrease in crypto-related crimes in 2020According to a report from the security company CipherTrace, there are still many problems. For this reason, many governments want to ban cryptocurrencies because they expect such measures will prevent hackers from causing harm.

However, this result seems unlikely. With tools such as ransomware, malware, and other types of criminal activity, hackers can change the way they receive payments without spending too much effort. Cryptocurrencies provide anonymity, but they are not the only payment method for doing so.

These methods provide more privacy

For example, gift cards are a convenient and legal way to transfer value from one person to another.Most convenience stores Sell Gift cards for various services, including Netflix, iTunes, PaySafeCard, etc. Every gift card is valuable and can be obtained or converted into online currency without a name. In essence, these cards are more private and anonymous than cryptocurrencies. However, they are also easier to access, which makes them a more important issue for governments hoping to discourage hackers.

The same concept applies to prepaid cards of mobile providers. Since these cards do not require identity verification and activation checks when purchased, they are basically anonymous currency. Although prepaid mobile cards may not necessarily cross national borders, they are still a private way to transfer value from one person to another.

If the government really wants to discourage hackers, they also need to find a way to isolate them from the existing financial system. Even in 2021, bank accounts and payment cards are easily hacked and abused. Hackers and other criminals can access bank accounts in various ways, including mobile Trojan horses, fake applications, phishing, keyloggers, man-in-the-middle attacks, and more. As long as hackers have a way to make money without an immediate impact, they will continue to explore different options.

related: Don’t blame encryption for ransomware

Correctly view the “criminal role” of cryptocurrency

Although the government firmly believes in Bitcoin (Bitcoin) And other cryptocurrencies are the main causes of cybercrime, but the reality is often different. According to the recent Chainalysis report, only 0.34% of the total trading volume in the crypto market related Illegal activities by 2020. This is a sharp drop from the 2% recorded in 2019. This study by Chainalysis shows that fewer and fewer criminals are paying attention to Bitcoin and other encrypted assets.

Digging deeper, it is clear that ransomware is still the preferred solution for online crime, and it is a very important threat and problem. Due to COVID-19 restrictions, more and more people are now working from home, and criminals who want to make money quickly have new opportunities. This does not automatically mean that cryptocurrencies will be eliminated, because most consumers do not know how the industry works.

related: COVID-19: As the workplace adapts to the new normal, decentralization becomes the norm

Conclusion: Encryption ban is not the solution

For many reasons, any government that wishes to ban cryptocurrencies will not succeed. First, it is impossible to prevent people from using encrypted assets because the government cannot control these networks, and there is no central puppet or CEO to pressure the shutdown activities, which makes it almost impossible for the government to take action. Although regulators may cause difficulties for service providers, these companies are not necessarily essential to maintaining cryptocurrencies.

In addition, the many money-making options available to hackers and scammers should not be overlooked. If the goal is to prevent illegal activities, solving the problem of abuse of traditional finance needs to be a top priority. Compared with banking-related services and products, as well as gift cards and other forms of anonymous currency, cryptocurrency has a much smaller impact on criminals.Solving cybercrime is an urgent issue because of the cost spiral Further out of control, but the focus should not be on cryptocurrencies.

Any attempt to combat cryptocurrency “because criminals use it” is false. If this is indeed the goal, then there are different ways of exploring instead of prohibiting something. Since cryptocurrency cannot be used without a traditional financial system, it is not difficult to see where the government should focus its attention. Unfortunately, they seem to be reluctant to admit that the systems they help maintain are problematic in most criminal activities today.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Merwick House Is a blockchain entrepreneur, writer and brand expert. He founded Startup Fortune in 2018, a global entrepreneurial platform that allows entrepreneurs from all over the world to connect and collaborate.