Report Finds Less Illicit Crypto Activity in Nations With Full Licensing Regimes in 2023: TRM Labs
Blockchain analytics firm TRM Labs reported that crypto service providers in countries with full regulatory regimes had lower rates of illicit activity in 2023 than those in less regulated jurisdictions. The report reviewed global crypto policy in 21 jurisdictions, representing 70% of global crypto exposure. 80% of these jurisdictions have tightened crypto oversight, and almost half have advanced consumer protection measures. The report suggests that increased regulatory maturity and a greater focus on compliance have impacted illicit finance activities. It predicts that questions about responsibility, accountability, and regulatory oversight in the DeFi space will persist in 2024. However, data from standards adopted in 2024 will provide insights for 2025. TRM Labs also anticipates that the U.S. will take action on mixers and update national risk assessments on money laundering and terrorist financing in 2024.
