Ethereum News – Europol issued a warning about Ethereum’s increasing use in dark pool transactions for money laundering. The agency highlighted a surge in illicit ETH transactions, including ransomware and terrorism financing, urging stricter regulations on exchanges like Coinbase and Kraken.
Ethereum’s $315 billion market cap and its dominance in DeFi, hosting 60% of smart contract activity, make it a target for illicit use.
Dark pool transactions, conducted off public blockchains, obscure trading activity, complicating tracking.
TRM Labs estimates 1% of Ethereum transactions involve illicit activity, a small but significant portion given its $17.6 billion daily trading volume.
Europol’s report follows the Nobitex hack, where stolen ETH was laundered, prompting calls for enhanced KYC/AML compliance under the EU’s MiCA framework.
Ethereum’s price, at $2,900, remains resilient, driven by ETF inflows and Federal Reserve rate cut signals.
However, regulatory pressure could impact exchanges, potentially raising compliance costs. Crypto advocates argue that cash remains a larger vehicle for illicit finance, and overregulation risks stifling Ethereum’s innovation in DeFi and NFTs.
Europol’s warning highlights the need for balanced regulation to curb illicit use while preserving Ethereum’s role as a leading blockchain.
Exchanges must strengthen monitoring to maintain trust, as Ethereum navigates its dual role in legitimate and illicit finance.
