2023 Report: Full Licensing Regimes Reduce Illicit Crypto Activity - TRM Labs

• TRM Labs Reports Lower Illicit Activity Rates in Fully Regulated Crypto Jurisdictions
• Global Crypto Policy Review of 2023
• Regulatory Maturity and Compliance Focus
• DeFi Space and Regulatory Oversight
• Future Predictions for 2024

TRM Labs Reports Lower Illicit Activity Rates in Fully Regulated Crypto Jurisdictions

TRM Labs, a blockchain analytics firm, determined that crypto service providers based in countries with comprehensive regulatory systems experienced lower illicit activity rates in 2023. This was in comparison to providers hailing from less regulated environments.

Global Crypto Policy Review of 2023

The firm's analysis was part of a report released on Monday. The report reviewed the global crypto policy of 21 jurisdictions, representing 70% of the global crypto market exposure. It found that as many as 80% of these jurisdictions bolstered crypto oversight. Furthermore, almost half of these countries made significant advancements in consumer protection measures.

Regulatory Maturity and Compliance Focus

Despite variations in national philosophies and priorities, the report noted a trend towards certain standards. It added that the growing regulatory maturity and an increased focus on compliance in the private sector have already influenced illicit financial activities.

DeFi Space and Regulatory Oversight

The report predicts lingering questions in the DeFi space for 2024, such as the placement of responsibility and accountability and the practical execution of regulatory oversight. Though these questions might remain unanswered in 2024, data from this year's adopted standards will provide valuable insights into the impact of the rules set for 2025.

Future Predictions for 2024

In addition to the aforementioned, TRM Labs forecasted that 2024 will witness the U.S. taking action on mixers and revising national risk assessments related to money laundering and terrorist financing.

Edited by Jonathan Stoker