An important Russian legislator, Andrey Lugovoyshared an exciting take on the cryptocurrency industrywhich contradicts the belief of many regulators in the world.
Lugovoy, who is a member of the working group on Russian crypto regulation, in a recent statement, argued that the majority of crypto transactions are not used for illegal activities. He went on to say that the belief that crypto transactions are used for illicit transactions is a myth at best.
Speaking to Parlamentskaya Gazeta, Lugovoy revealed that he decided based on the transaction volume of some of the largest crypto exchanges in Russia and the world, with less than 5% of their transactions being illegal.
Using this data as a premise, he argued that even for the few cases of illicit activity, there are effective tools designed to identify wallets being used for illegal purposes effectively.
One of these tools, according to him, are those offered by blockchain analytics firms Chainalysis and Crystal.
According to experts, cash is used in illegal activities in the amount of 11-13% of turnover.
Interestingly, Lugovoy’s opinion coincides with a report Chainalysis that revealed that while illegal addresses received approximately $14 billion in 2021, they only accounted for 0.15% of total transactions for the year.
According to the report:
The growth of legitimate cryptocurrency use far outpaces the growth of criminal use, the share of illicit activity in cryptocurrency transaction volume has never been lower.
Russia and the adoption of cryptocurrencies
Russia has faced severe economic sanctions for its activities in Ukrainewhich has led authorities in the Western world to believe that the country could use cryptocurrencies to evade sanctions.
However, the crypto community has argued against saying that Russia would not be able to evade sanctions using cryptocurrencies.
On the other hand, some Russian government agencies have spoken out against the central bank’s decision to ban the space. Instead, they have urged authorities to regulate the space and not ban it.