#StopLossStrategies Despite the high-profile headlines often surrounding crypto crime, illicit transactions make up only a small fraction of the overall crypto activity.

Andersen-Röed emphasized this point, drawing on data from blockchain analytics firm Chainalysis. According to the data, illicit transactions have consistently accounted for less than 1% of total crypto volumes. In comparison, the United Nations estimates that between 2% and 5% of global GDP – around $2 trillion annually – is laundered through the traditional financial system.

The FIU head further highlighted how the very nature of blockchain technology makes it easier to trace illicit activity than traditional fiat transactions. The transparency and traceability of blockchain allow for more effective tracking of bad actors, which is a major advantage over more opaque traditional systems.

Additionally, he noted that despite the significant rise in crypto users over the past few years, the volume of illicit activity has not spiked proportionally. This, according to Andersen-Röed, suggests that compliance efforts and regulatory advancements are proving effective, helping to curb illegal activity as the crypto ecosystem continues to grow.