Steven Schuster 
Cyber-attacks, where criminals use digital technology to commit fraud, identity theft, and other crimes, are on the rise. It’s predicted that by 2025, cybercrime will cost the global economy $10.5 trillion, up from $6 trillion in 2022. This increase has been fuelled by the growing online presence of people and companies, but some experts say that cryptocurrencies such as Bitcoin have also helped enable hackers.
Bitcoin, a peer-to-peer payment network, was founded in 2009. Since then, it’s gone on to become the largest and most important digital currency, surpassing expectations in terms of usage and demand. The demand has seen the BTC price increase significantly, with many early investors seeing a 1000% return.
Many cyber criminals use Bitcoin as a way to easily move money around, with fast and simple online transactions as one of the main selling points of crypto. In this article, we’ll look at how criminals use Bitcoin and how regulations can help to prevent cybercrime.
What is Bitcoin and How is It Used in Cyber Crime?
Bitcoin is a cryptocurrency, the first of its kind, and a means of making online payments. It was created by an anonymous developer in 2009, and it has since gone on to become one of the most talked-about investments of modern times.
Bitcoin uses blockchain technology to record transaction data, ensuring it’s immutable and decentralized.
Because Bitcoin is decentralized, it operates without needing any banks, governments or organizations to control it. This is a major advantage for many users, though it also means it’s suitable for cybercrime. Criminals are able to use Bitcoin to move large amounts of money over borders without any restrictions.
The features that make Bitcoin so useful also make it ideal for cybercriminals, and many recent cyber-attacks, particularly those involving ransomware, have extorted businesses for large payments made using Bitcoin or other cryptocurrencies.
Until the last few years, most cybercriminals focused on smaller targets, using phishing scams to steal credit card information and commit fraud. However, the use of ransomware attacks has increased in big businesses, sometimes forcing companies to pay millions of dollars in Bitcoin to free their locked data.
Bitcoin uses a public blockchain, which means every transaction is visible. However, hackers often set up anonymous accounts to buy and exchange cryptocurrency, allowing them to hide their true identities even if the payments themselves are visible. In addition, services known as
Bitcoin tumblers effectively launder money by obfuscating transaction data.
How Regulations Can Prevent Cryptocurrency Being Used in Cybercrime
Since it was first introduced, many governments have sought to regulate cryptocurrency. In some countries, such as China, the use of crypto is now banned completely. However, full bans are rarely effective at reducing criminal activity. Instead, governments should seek to make it harder for criminals to use Bitcoin effectively, allowing legitimate users to still benefit from digital currencies.
A good example of sensible legislation is requiring all cryptocurrency exchanges to be licensed and to carry out checks on their users. Those who use standard crypto exchanges must now complete KYC verification, proving their identity in order to purchase and sell cryptocurrency. This means that crypto transactions can always be traced to a particular user, making it harder for criminals to cash out their coins.
The Future of Bitcoin and Cyber Crime
Some believe that cryptocurrency markets should be fully regulated, just like any other financial market. However, many crypto purists believe that this goes against the foundations of decentralization on which Bitcoin is based. The truth is that for crypto to continue to exist, regulations must be made to help make it safer and ensure that criminals can’t use it to launder money and profit from illicit behavior.
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Elyndarin Kryvak 
Simone Reed 
