Crypto Service Providers in Regulated Countries Show Lower Illicit Activity Rates, Says TRM Labs Report

According to CoinDesk, blockchain analytics firm TRM Labs has discovered that crypto service providers in countries with comprehensive regulatory regimes had lower rates of illicit activity compared to those in less regulated jurisdictions in 2023. The analysis was published in a report on Monday, which reviewed global crypto policy in 21 jurisdictions representing 70% of global crypto exposure. The report found that 80% of these jurisdictions have moved to tighten crypto oversight, and nearly half have specifically advanced consumer protection measures. The report stated, "While differences in national philosophies and priorities persist, we observed a convergence toward certain standards. This increasing regulatory maturity and greater focus on compliance by the private sector have already impacted illicit finance activities." The report predicts that questions will remain in the DeFi space in 2024, such as where responsibility and accountability lie and how regulators can practically exercise oversight and authority. Although these questions are unlikely to be answered in 2024, data from standards adopted this year will provide insights to better understand the impact of the rules for 2025. TRM Labs also predicted that 2024 will see the U.S. take action on mixers and update national risk assessments on money laundering and terrorist financing.