Cryptocurrency is becoming a rapidly increasing source of illegal transactions, pushing regulators and law enforcement to ensure it is properly monitored. A recent report commissioned by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), a European Union agency, called for stricter identity checks on crypto exchange users and police training to combat the use of darknet marketplaces to buy illegal goods with cryptocurrency.

The report, prepared by Kim Grauer and Eric Jardine of Chainalysis, a blockchain research platform provider, noted that the use of darknet marketplaces continues to grow despite government efforts, and banning cryptocurrency entirely is not the answer. The report suggests that in addition to crypto identity checks, police need better training to recognize and respond to illegal crypto currency activity. This could include teaching law enforcement personnel on how to use encrypted platforms, and how to trace and seize crypto.

The European Commission is working to build a new framework for cryptocurrency, which would include a licensing system for crypto exchanges. This would involve users sharing their identity for transactions, as well as an upper limit for anonymous crypto transactions. The European Parliament has also suggested this regulation to help address money laundering and other criminal activities.

It's clear that more work needs to be done to control cryptocurrency transactions. Regulators and law enforcement need to use a well-rounded approach to deal with darknet marketplaces. Identity checks on crypto exchange users, as well as improved police training, could be essential in helping to better identify and address criminal activity. It will be interesting to see how the European Commission's proposed framework helps deter illegal cryptocurrency transactions.



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