According to research by blockchain analytics company TRM Labs, in 2023, the rates of criminal activities among cryptocurrency service providers in nations with complete regulatory frameworks were lower than those in less regulated areas.The analysis by TRM Labs was released on Monday in a paper that examined global crypto policy for 2023 in 21 jurisdictions, accounting for 70% of all crypto exposure worldwide.According to the analysis shared with CoinDesk, up to 80% of the 21 jurisdictions have taken steps to strengthen their regulation of cryptocurrencies, and nearly half have particularly advanced consumer protection safeguards.
“While differences in national philosophies and priorities persist, we observed a convergence toward certain standards,” the report said. “This increasing regulatory maturity and greater focus on compliance by the private sector have already impacted illicit finance activities.”
The report predicts that in 2024 questions will remain in the DeFi space – for example, “where responsibility and accountability lie, and how regulators can practically exercise oversight and authority.”
The research stated that although it is doubtful that these questions would have an answer in 2024, information from standards this year will help to clarify the implications of the regulations for 2025.TRM Labs also forecasted that the United States will update its national risk assessments regarding money laundering and terrorism financing in 2024 and begin implementing mixers.