Cypher
AltcoinCryptocurrencyNewsScams

Scams Ratio in Cryptocurrency is Reached to $4.26 Billion in 2019

Recently, the crypto intelligence firm has published a report about the crypto scams that say that in this year (2019), the scams ratio in cryptocurrency has moved up to $4.26 Billion.

This report acclaims that the scams ratio has affected the market in a bad manner. Thieves have displeased the investors and traders because this act of defrauding has caused a massive loss to investors and traders, that is why this is considered offensive by them.

During Q2 2019 exchanges, mere hacking actions were considered responsible for the theft of more than $124 Billion in cryptocurrency markets.

This year of cryptocurrency involves different illegal acts like theft, scam, etc. which has affected its market. But now cryptocurrency is looking forward to exile these illegal acts, so this year can turn into “the year of Exit scam”.

Significant illicit activities

Illicit activities have influenced cryptocurrency and it has got popularity in these cases. It is easy for thieves to get access to cryptocurrency because of its digital quality and no authority.

CypherTrace discusses some disasters that encircle QuadrigaCX and a notable South Korean scheme in Q2 2019. The South Korean scheme has influenced $2.9 billion users of crypto in defrauding. It is pointed by CypherTrace in the report that the digital currency, which is mostly used for illicit activities, is Bitcoin (BTC). But the other cryptocurrencies like Ether (ETH), Litecoin (LTC), Monero (XMR), Bitcoin Cash (BCH), and Dogecoin (DODGE) are also being attacked by different disasters.

📰 Also read:  Crypto Malware: What Is It And How Can It Be Detected?

Implementation of new rules

As scams and other illegal activities have affected crypto-currency this year so there is a chance of change in cryptocurrency exchange in the following year.

CypherTrace acclaims in the report that in the upcoming month, Anti-Money Laundering and Counter-Terrorism Financing are the most effective exchange regulations that can be implemented. These regulations can create hurdles in hackers’ work and in this way can slow down their bad influence on cryptocurrency.

Financial Action Task Force (FATF) is implemented yet because there are some recommendation issues regarding market security.  A new exchange rule “Travel Rule” was suggested by FATF in the beginning of June for exchange in cryptocurrency.

📰 Also read:  ShapeShift Settles SEC Charges Over Illegal Offering of Securities

Conclusion

The main aim of these new exchange rules and regulations is to lower the effect of illicit activities like a scam, theft on the value of cryptocurrency. FATF may fit in such cases but it is not implemented yet.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  HSBC Unveils Tokenized Gold Targeting Hong Kong-based Retail Customers 

Cypher

Leah Hutton (Luxembourg)

Leah Hutton has recently joined Tokenhell team as a freelance writer. She has comprehensive knowledge of blockchain and various cryptocurrencies.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content