MENA Second-Safest Region in Terms of Total Value of Illicit Assets in 2022

Blockchain analytics company Chainalysis said the Middle East and North Africa (MENA) region is the world’s second-safest region in terms of the total value of illicit assets that are transferred in exchange for services, according to Cointelegraph.

According to a report by Chainalysis, the MENA region received more than $700 million in illicit funds transferred in 2022, 10.5% of this value ($74 million) was received by the UAE. The $74 million includes $40 million in stolen cryptocurrency, while $27 million was obtained through fraud. Other crime categories had a role in collecting the remaining amount, including financing terrorism and many other crimes.

The report pointed out that scams are the most common type of illegal activity that led to money entering the MENA region, followed by stolen money, dark web activities, and ransomware.

Although the MENA region seized hundreds of millions of dollars in illegal ways, it is still the second safest region in terms of the total value of illicit money transferred for services, at a rate of between 5 and 8%, after Sub-Saharan Africa.

Despite the market downturn in 2022, global cryptocurrency crime was a record, with an estimated total value of $20.6 billion in total illicit funds. The report said the share of cryptocurrency activities linked to illegal activities increased overall for the first time since 2019, reaching 0.24% in 2022, up from 0.12% in 2021.

Despite this, the report showed that cryptocurrency crime is a “small share of less than 1% of the total volume, adding illegal activities in the cryptocurrency world are still on the wane, despite the hike this year.