According to Gronager, the transparency and international applicability of blockchain technology will make crypto a preferred method of solving crimes. Chainalysis CEO stated in an interview at the Token2049 conference held in Singapore that the use of artificial intelligence-supported agents by governments is “not far away”.

Gronager argued that currently governments use manpower-based methods to combat crypto crimes, but artificial intelligence can make these processes much more efficient by automating them. He stated that thanks to artificial intelligence agents, different government institutions can fight crime without interfering with each other.

He said this technology will also play an important role in detecting tax evaders, but people who made ordinary crypto transactions a few years ago will likely be lost in their tracks.

Chainalysis’ CEO thinks that especially artificial intelligence-supported monitoring systems will enable governments to fight more effectively against tax evasion. The crypto ecosystem is increasingly regulated against criminal activities such as tax evasion and money laundering.

Tax authorities, especially the US Internal Revenue Service (IRS), have already started using artificial intelligence technologies to track potential tax evaders. However, how effective these technologies will be will depend on the privacy-focused crypto protocols and tokens.

Gronager acknowledges that crypto mixing protocols and privacy tokens like Monero make it harder to track down criminals. However, he states that privacy-oriented transactions have a very small place in crypto transactions in general.

Privacy transactions account for less than 1% of all crypto transactions. So, although such privacy-focused crypto transactions do not pose a major threat, it is possible to track most crypto crimes thanks to the transparent structure of the blockchain.

Chainalysis is known as a blockchain analysis firm that plays an important role in fighting crypto crimes. According to the company’s analysis, more than $100 billion of crypto money has been transferred from illegal wallets to exchanges or alternative conversion services since 2019.

This shows how large the scale of crypto crimes is and how important it is to monitor these crimes. Gronager thinks artificial intelligence technologies will help governments pursue such crimes more effectively.

However, according to Gronager, even when these technologies become fully automated, the fight against crime in the crypto world will not be completely over. The rapid development and innovative nature of the crypto ecosystem will continue to constantly present new challenges and opportunities.

Blockchain analytics powered by artificial intelligence can be an effective tool in the fight against crime, but it is clear that a broader understanding and strategy needs to be developed regarding criminal activities and regulations in the crypto world.

As Gronager predicts, in the coming years, AI-powered monitoring systems will play an important role in combating crypto crimes. However, even when combined with the transparent nature of blockchain, these technologies may not offer a completely seamless process.

Still, such innovative approaches to fighting crime in the crypto world will be critical to the future of the industry.