Chainalysis: Illegal crypto activity has fallen 19.6% to $16.7 billion so far this year

Chainalysis noted in a blog post that this year has seen many seemingly positive developments in the cryptocurrency ecosystem. It noted that with the approval of spot Bitcoin and Ethereum ETFs in the United States and the revision of fair accounting rules by the Financial Accounting Standards Board (FASB), cryptocurrencies continue to gain mainstream acceptance in many ways. Chainalysis also mentioned that funds flowing into "legitimate" services so far this year are at the "highest level" since 2021 (the peak of the last bull market). It noted that funds for illegal activities so far this year have fallen "19.6%, from $20.9 billion to $16.7 billion, indicating that legal activity is growing faster than on-chain illegal activity." These signs indicate that cryptocurrencies will continue to be "adopted globally", which is also reflected in Japan's crypto ecosystem. Overall, Japanese services have “generally lower exposure to global illicit entities, such as sanctioned entities, darknet markets (DNMs), and ransomware services, as most Japanese services are primarily targeted at Japanese users.” But the report clarifies that this does not mean that Japan is “completely immune to crypto-related crime,” with public reports, including Japan’s Financial Intelligence Unit (FIU) JAFIC, highlighting that cryptocurrencies pose “significant money laundering risks.” Chainalysis further noted that while Japan’s exposure to international illicit entities may be limited, the country “is not without its own local challenges. Off-chain criminal entities that exploit cryptocurrencies are prevalent but often go unnoticed.” (Crowdfund Insider)