Key Points

• Illicit activities using cryptocurrency increased in 2024, with stablecoins accounting for 63% of criminal transactions.
• The European Parliament’s MiCA regulations have set a global precedent for structured oversight of digital assets.

The global cryptocurrency landscape experienced a significant surge in adoption and innovation in 2025. However, this growth was accompanied by an alarming increase in illicit activities associated with digital currencies.

Illicit Activities and Cryptocurrency

A report from Chainalysis revealed that the total value received by illicit cryptocurrency addresses decreased to $40.9 billion in 2024. However, the nature of on-chain criminal activity is changing, with stablecoins surpassing Bitcoin (BTC) as the preferred choice for illicit transactions, making up 63% of all such activity. This shift mirrors a broader rise in stablecoin adoption, with total activity growing by 77% year over year.

Despite the decrease in value received by criminal addresses, Chainalysis projects that illicit cryptocurrency volumes could rise to $51.3 billion this year. This increase follows a year of recovery for the cryptocurrency sector in 2023, which saw significant drops in scamming and hacking revenues.

Regulation Efforts

In response to these challenges, the European Parliament enacted the Markets in Crypto-Assets (MiCA) regulations, establishing a global precedent for regulatory efforts. These rules primarily target Crypto-Asset Service Providers (CASPs), including centralized exchanges. The MiCA regulations align closely with existing regulatory frameworks, setting a precedent for structured oversight while providing a potential blueprint for other nations.

In addition, the United Arab Emirates (UAE) has also become a global leader in cryptocurrency by implementing well-defined regulatory frameworks. The UAE’s emphasis on stablecoins highlights its commitment to financial stability in the volatile cryptocurrency market.

As President Donald Trump’s second inauguration approaches, the cryptocurrency market prepares for potential volatility. Speculation is rife regarding Bitcoin’s ability to maintain the critical $88k level. High-return investments in tokens like Pepeto [PEPETO], Dogecoin [DOGE], and Ripple [XRP] are attracting investor interest. However, concerns remain due to the lack of a robust regulatory framework, particularly as stablecoins are often targeted for illicit activities.