SlowMist, a leading security company in the blockchain industry, has recently released a report on the trends of anti-money laundering (AML) in the blockchain sector in 2023. Through their extensive analysis and collaboration with their network partners, SlowMist has been able to assist clients, partners, and hacked entities in freezing over $12.5 million in funds throughout the year.
The report highlights that there were 31 incidents in 2023 where victims of attacks were able to recover either all or a portion of their lost funds. In these incidents, a total of approximately $384 million was stolen, of which $297 million was successfully recovered, accounting for an impressive 77% of the stolen amount. Remarkably, the funds of 10 protocols were fully returned.
SlowMist emphasizes that AML is a crucial undertaking, whereby governments leverage legislative and judicial powers to pinpoint potential money laundering activities, handle the associated funds, and take punitive action against individuals and institutions involved. This systematic approach is designed to prevent criminal activities.
The report sheds light on the evolving landscape of money laundering, particularly within the cryptocurrency realm. Criminals are adopting more diversified and concealed methods, leveraging the difficulty of tracing virtual currencies to obscure the origins of illegal funds. As a result, AML has become one of the biggest challenges faced by regulatory compliance institutions.
While the cryptocurrency market experienced volatility in 2023, with instances of fraud and market impacts caused by industry giants such as SBF and CZ, governments and international organizations have taken a cautious approach. Amidst this backdrop, as many as 25 countries and regions, including Austria, Germany, Japan, and Switzerland, have implemented legislation or regulations for stablecoins.
However, some major countries like the United States, the United Kingdom, and Canada have yet to finalize stablecoin legislation or establish a comprehensive regulatory framework for cryptocurrencies. On the other hand, crypto-friendly jurisdictions such as Singapore and the United Arab Emirates have embraced cryptocurrency-related regulations, excluding those specifically related to stablecoins.
SlowMist affirms that as blockchain and cryptocurrency technologies continue to gain traction, more governments and institutions are becoming actively involved, prompting a shift towards more specific and globally aligned regulatory policies. This gradual clarification of rules will aid virtual asset service providers and financial institutions in combating money laundering, illegal fundraising, and facilitating effective sanction screening and transaction monitoring.
As a security company committed to the blockchain industry, SlowMist pledges to proactively respond to national regulatory policies and promote technology applications that ensure regulatory compliance. This dedication will contribute to the overall security and stability of the blockchain ecosystem.
The source of the article is from the blog qhubo.com.ni