Despite #cryptoindustry being hit hard with layoffs in January, the past month has shown a significant slowdown in job cuts. According to reports, only 570 employees were let go in February, compared to over 2,900 in the previous month. Although a dozen companies were affected, the layoffs were mostly in the double digits, unlike the triple-digit layoffs seen in January at major exchanges such as Coinbase, Crypto.com, and Huobi.

The recent cuts were from #blockchain analytics firms and digital asset platforms, with Elliptic and Messari being the latest to cut 10% and 15% of their staff, respectively. However, the founder of Messari reassured the public that the cuts were due to restructuring and market challenges. Despite the job losses, the crypto industry remains dynamic and continues to attract new talent and investment.

Blockchain analytics companies Elliptic and #Chainalysis have recently announced layoffs as part of a strategic move to reduce operating expenses. Elliptic has laid off 20 employees, while Chainalysis has let go of 44 employees, primarily in sales. These moves come amid concerns about an extended recession, which has impacted the tech industry as a whole. 

Despite this, the blockchain industry continues to evolve and innovate, offering exciting opportunities for those looking to make a difference in the world of Web3. The tech industry has seen a decrease in layoffs in February, with a total of 24,572 employees laid off across 129 companies, according to layoff tracker Layoffs.fyi. 

While Web3 companies have been hit harder, due in part to concerns of tougher regulations and the correlation between Bitcoin and the stock market, the crypto industry remains resilient. 

However, some companies have had to make tough decisions in order to remain competitive, with a nonfungible token (NFT) company Dapper Labs and Ethereum-scaling platform Polygon Labs both undergoing internal restructuring and laying off around 20% of their staff. Despite these challenges, the Web3 space continues to offer exciting opportunities for those passionate about innovation and disruption.

February proved to be a challenging month for the cryptocurrency industry, with several major firms announcing staff cuts. Polygon, Dapper Labs, Immutable, Bittrex, Magic Eden, Fireblocks, Protocol Labs, and The Block all revealed reductions in their workforce, with Polygon cutting 100 jobs alone. 

Payments company Affirm also made headlines with the announcement that it would be winding down its crypto program, leading to a 19% staff cut. While the news may be concerning to some, experts like Kevin Gibson, founder of blockchain recruitment firm Proof of Search, believe that these companies are taking decisive action to streamline their operations and improve their overall competitiveness. 

Although the industry has experienced some turbulence, there are also signs that the pace of layoffs has slowed compared to the previous month. As the industry continues to evolve, it remains to be seen how these developments will impact the overall growth and success of the cryptocurrency ecosystem.

According to Jan, who closely follows the movements of boards and venture capital firms, many companies are bracing themselves for the worst in light of the 2022 results. However, the good news is that there have been fewer layoffs this month.

“Despite the challenging circumstances, companies are still committed to building outstanding products. However, with current teams already stretched thin, further layoffs could risk cutting into their muscle and hinder their ability to operate effectively.”

While the outlook may seem promising, Gibson, a leading industry expert, warns that the United States securities regulator could still cause more harm. Additionally, continued media coverage of the Sam Bankman-Fried and the FTX collapse is having a ripple effect on the public perception of the industry and may hinder mainstream adoption.

#crypto2023 #coingabbar

Blockchain analysis firm Chainalysis released a report discussing crypto adoption in Eastern Europe after the Russia-Ukraine war.

The report stated that global crypto usage has fallen by 22% in the last year.

Ukraine and Russia lost $35.8 billion and $41 billion, respectively, in crypto transaction volume.

Blockchain analysis firm Chainalysis recently published a crypto adoption report in Eastern Europe discussing the rise in transaction activity despite the Russia-Ukraine war. The publication highlighted that Eastern Europe ranks fourth-largest, having accumulated $445 billion in on-chain value from July 2022 to June 2023, representing 8.9% of the global transaction activity.

Next, we look at Eastern Europe, and examine how the Russia-Ukraine War has impacted crypto adoption over the last year. https://t.co/uFw6aErRDp

— Chainalysis (@chainalysis) October 18, 2023

According to the article, raw transaction volume declined by 22% over the past year, mirroring the global downturn during the same period. Additionally, Eastern Europe continues to grapple with the economic repercussions of the Russia-Ukraine War.

The region, which was earlier home to institutional-sized transfers, now witnesses stability in smaller institutional and retail transactions, according to the report. The shift could suggest that major crypto players have reduced their involvement during a crypto downturn, but other participants remain engaged. Simultaneously, DeFi activity has increased to 3%, reportedly influenced by regulatory uncertainty and market disruptions.

Moreover, the war triggered a year-over-year decline in transaction volume in both nations, with Ukraine’s at $35.8 billion and Russia’s at $41 billion. Grassroots adoption in both countries also decreased, causing them to slide two and four positions, respectively, on Chainalysis’ Global Crypto Adoption Index.

Meanwhile, Russian usage of major international exchanges plummeted by over 50%, likely due to restrictions placed on Russian users and banks in response to the war, according to the report. In July 2023, Russia announced it was making significant progress in launching its central bank digital currency (CBDC), known as the Digital Ruble.

The report mentioned that the decline in crypto volumes in Ukraine is a result of economic challenges stemming from the war. The report mentioned Ukrainian crypto business Kuna, which relocated its headquarters to Lithuania and shifted its focus to the European market. The company has introduced Kuna Pay, a B2B crypto payment solution with on and off-ramps, and is working on staking products and crypto custody solutions for Ukrainian banks, subject to regulatory approval.

The post Chainalysis Report Reveals 22% Decline In Global Crypto Usage appeared first on Coin Edition.

- Ransomware attacks experienced a significant increase in 2023, culminating in the theft of an unprecedented $1 billion in cryptocurrency, as revealed by a recent Chainalysis report.
- Notable victims of these attacks encompassed a wide range of entities including individuals, institutions, media outlets, hospitals, airlines, and governmental organizations.
- Chainalysis highlighted the emergence of novel ransomware strains such as CL0P, which employed sophisticated "big game hunting" strategies to target corporations.
- To obscure the trail of illicit gains, hackers opted for mixers and cross-chain bridges over centralized exchanges (CEXs) for laundering funds, complicating the tracking process.

Blockchain hacks drained nearly $2 billion from decentralized finance (DeFi) protocols in the past year, as disclosed in a report by Chainalysis, a prominent blockchain security firm. However, a significant revelation within the same report points out that approximately $1 billion of cryptocurrency payments to hackers originated from ransomware attacks.
The escalation in ransomware attacks, reaching an unprecedented high in 2023, has caught the attention of cybersecurity experts. Chainalysis attributes this surge to the emergence of 538 new ransomware variants, with the notorious CL0P being the most prominent among them. The attackers adopted diverse strategies, including the "big game hunting" tactic to target major entities, like hospitals, media outlets, and government institutions.
CL0P, in particular, stood out for exploiting "zero-day vulnerabilities" to access victims' data, opting to publicly expose it instead of encrypting it. Other ransomware variants, such as Phobos, operated on a ransomware-as-a-service (RaaS) model, enabling cybercriminals to share profits with collaborators.
Chainalysis revealed the challenges in tracking and halting ransomware funds, as hackers employed cross-chain bridges, instant exchangers, mixers, and underground exchanges to obfuscate the source and destination of funds. In 2023, only 7% of ransomware payments were directed to centralized exchanges (CEXs), while the majority flowed into alternative platforms with lower Know Your Customer (KYC) requirements and reduced accountability.
The report underscores the need for the crypto community to address the rising threat of ransomware, emphasizing the complexity of criminal strategies and the importance of collaborative efforts in tracking and preventing illicit activities. The fluid movement of funds across different blockchains and platforms highlights the ongoing challenge for law enforcement agencies. As the crypto landscape continues to evolve, vigilance, research, and informed decision-making remain essential in navigating this volatile financial space.
Disclaimer: While Voice of Crypto aims to provide accurate and current information, readers are advised to conduct their research and make independent financial decisions due to the high volatility of cryptocurrencies. The platform is not liable for any missing facts or inaccuracies in the provided information.

#Rasomware #CEX #Chainalysis #cryptocurrency #Crypto2024

Chainalysis is the leading company in crypto assets-related crime investigations and customer protections

Collaboration will enhance transparency and trust of the unagi omnichain ecosystem  

The WEMIX Foundation has entered into a strategic partnership with Chainalysis, the blockchain data platform, to ensure high transparency and security for the unagi (Unbound Networking & Accelerating Growth Initiative) omnichain ecosystem that WEMIX is developing. 

Chainalysis provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 70 countries. Its data powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely.

WEMIX will screen wallet addresses, reduce potential exposure to illicit activity including money laundering, and run a comprehensive risk and compliance program through the Chainalysis data platform without impacting user experience. In addition, the network is proactively engaged with the Chainalysis Incident Response program so that if an incident such as a hack were to occur, it will be positioned to trace and recover stolen funds immediately.

The two parties will collaborate to secure storing and trading of assets so that the transparency and reliability of the WEMIX3.0 mainnet and unagi’s omnichain ecosystem can be heightened even further.

Editors’ Notes:

The WEMIX Foundation is dedicated to the decentralization, security and long-term growth of the WEMIX3.0 ecosystem.

unagi (https://unagi.io) aims to achieve cross-chain interoperability by building an omnichain connecting multiple blockchains that will facilitate the inter-chain flow of data and assets. 

Users can seamlessly conduct transactions, access dApps and protocols, plus manage and move assets between blockchains.

Unagi currently supports 8 blockchains (WEMIX3.0, Ethereum, Polygon, Arbitrum, Optimism, Avalanche, BNB Smart Chain, Kroma).

About WEMADE

A renowned industry leader in game development with over 20 years of experience, Korea-based WEMADE is leading a once-in-a-generation shift as the gaming industry pivots to blockchain technology. Through its WEMIX subsidiary, WEMADE aims to accelerate the mass adoption of blockchain technology by building an experience-based, platform-driven, and service-oriented mega-ecosystem to offer a wide spectrum of intuitive, convenient, and easy-to-use Web3 services. Visit www.wemix.com/communication for more information.

The post WEMIX enters into strategic partnership with Chainalysis appeared first on Visionary Financial.

Coinspeaker KPMG Canada Partners with Chainalysis to Combat Crypto Fraud

The KPMG Canada has announced a strategic partnership with blockchain analytics firm Chainalysis in response to the escalating threats of exploits and fraud within the crypto sector.

Kunal Bhasin, Partner and Cryptoassets and Blockchain Co-leader at KPMG Canada, emphasized that “this collaboration will help to further solidify KPMG’s expertise in forensic investigations and cryptoassets and blockchain technology.”

The KPMG Canada and Chainalysis Approach

As the digital assets ecosystem expands, so does the threat of fraud and criminal activities. The decentralized and pseudonymous nature of blockchain technology has made it an attractive platform for illicit activities such as money laundering, ransomware attacks, and fraud.

Companies operating in the digital assets space face the daunting task of safeguarding their platforms and transactions against these evolving threats. According to the Chainalysis 2023 Crypto Crime Report, crypto-based illicit transaction volume reached an unprecedented $20.6 billion last year.

Notably, the sector faces increasingly sophisticated threats, such as wallet hacks and SIM swaps. A recent high-profile incident saw crypto exchange Poloniex lose approximately $114 million when hackers targeted its hot wallets. besides Poloniex, other platforms have also suffered one form of exploit or the other in the past year.

In response to these escalating threats, KPMG, a renowned global consulting giant, is leveraging its expertise to fortify the defenses of companies operating in the crypto ecosystem. Through this strategic partnership, KPMG aims to provide comprehensive solutions to identify, prevent, and mitigate fraud risks associated with digital assets.

The collaboration is not only geared towards preventing fraud but also towards ensuring regulatory compliance within the digital assets sector. As governments around the world grapple with developing appropriate regulations for the growing crypto market, companies face the challenge of aligning their operations with evolving compliance standards. The collaboration, therefore, seeks to improve their Anti-Money Laundering (AML) compliance processes.

Industry-Wide Collaboration against Crypto Fraud

Meanwhile, the announcement of KPMG Canada’s partnership with Chainalysis coincides with broader industry efforts to tackle fraud associated with crypto. Mastercard Inc (NYSE: MA), in a recent report, revealed its partnership with Feedzai, a regulatory technology platform that employs Artificial Intelligence to combat online money laundering and financial fraud.

Through this collaboration, Feedzai will integrate with Mastercard’s CipherTrace Armada platform, monitoring transactions from over 6,000 crypto exchanges for potential fraud, money laundering, and other suspicious activities.

Remarkably, KPMG Canada has been actively involved in the crypto sector, showcasing its dedication to embracing emerging technologies. Last year, the firm entered the metaverse by establishing its first collaboration hub between its US and Canadian units.

Additionally, KPMG added Bitcoin (BTC) and Ethereum (ETH) to its balance sheet, demonstrating a forward-looking approach to incorporating digital assets into traditional financial strategies. The firm also ventured into the realm of Non-Fungible Tokens (NFTs), purchasing digital art from the World of Women (WoW) NFT collection.

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KPMG Canada Partners with Chainalysis to Combat Crypto Fraud

C1 Secondaries Fund, which has assets worth $500 million, is looking to invest in crypto firms such as Animoca Brands and Chainalysis as crypto markets continue their bullish momentum, according to a report in the Australian Financial Review.

The Silicon Valley and UAE-based fund is prepared to write $20 million to $50 million cheques to buy private holdings in crypto companies with a valuation of $300 million and above in their last funding round,  the Dec. 10 report citing a pitch deck.

Animoca Brands’ last capital raise sold shares at around $4.50. However, C1 Fund, whose co-founders include a former Coinbase executive, has offered to buy the shares at around $1.12, a price that's 75% below its most recent valuation, the Australian Fi. Meanwhile, the fund is also looking to buy Chainalysis shares at a 63% discount compared to its last capital raise. 

Related: Web3 firms to support ecosystem development through grants amid market uptick

The fund’s attempt to acquire stocks in the two companies follows a recent market uptick within the crypto space. In the first week of December, Bitcoin (BTC) surged past the $40,000 price point. This brought the market capitalization of the entire crypto space to over $1.6 trillion. The asset currently hovers at just under $42,000 at the time of writing. 

Apart from crypto assets, nonfungible tokens (NFTs) have joined the market surge. On Dec. 8, a report by DappRadar showed that NFT trading volume went near $1 billion in November. The increase in volume suggests that there’s a shift in user behavior compared to earlier months. In November, the average value of NFT transactions also climbed from $126 to $270.

Magazine: Real AI use cases in crypto: Crypto-based AI markets, and AI financial analysis

Chainalysis has released a preview of its report on crypto frauds in 2024, with particular attention to the explosive growth of Approval Phishing. In fact, in 2023 alone, 374.6 million dollars were stolen. 

But what is targeted approval phishing?

Chainalysis and crypto fraud: the report on the strong growth of approval phishing in the last two years

In a preview of its new “2024 Crypto Crime Report“, focusing on crypto fraud, Chainalysis discussed the strong growth that approval phishing has experienced in the last two years.

Targeted approval phishing scams are on the rise, with many fraudsters using romance scam tactics to trick victims into signing malicious TXs. We estimate victims have lost over $374M in 2023. Learn more in our first 2024 Crypto Crime Report preview https://t.co/5cRD7VgNrN

— Chainalysis (@chainalysis) December 14, 2023

“Phishing scams targeting approvals are on the rise, with many scammers using romantic scam tactics to trick victims into signing harmful TX. We estimate that victims have lost over $374 million in 2023. To learn more, check out our first preview of the Crypto Crime Report 2024.”

In practice, unlike other crypto scams, with targeted approval phishing, scammers induce the user to sign a harmful blockchain transaction. 

Specifically, the user’s signature gives the scammer’s address approval to spend specific tokens within their wallet, allowing them to empty the victim’s address of those tokens at their discretion. 

Usually, this technique involves three wallet addresses: 

that of the victim who signs the transaction with approval to the second address to spend their funds;

the second address which belongs to the phisher who will execute the transactions and transfer the funds to a third destination address;

the third address will be the one that contains the stolen funds. 

This technique of crypto fraud has seen an explosive growth in the last two years, with at least 374 million dollars suspected to have been stolen in 2023. 

Chainalysis and crypto fraud: the development of dApps is behind the growth of approval phishing

Chainalysis continues to describe the growing technique of approval phishing associating it with romance scams to convince victims to sign approval transactions.

And indeed, behind this strong growth of the last two years of this type of crypto fraud, there is the increase of decentralized applications (or dApps) that require approval signatures to authorize smart contracts. 

Specifically, dApps that use smart contracts, such as Ethereum, require users to sign approval transactions that authorize the dApp’s smart contracts to move funds held by the user’s address.

With this new habit introduced to the user, phishers insert themselves to forward their signature requests for approval of their transactions which are, instead, harmful. 

In the investigations conducted by Chainalysis, it seems that the peak of income for suspected approval phishing scammers occurred in May 2022. In numerical terms, the estimated amount of stolen funds through this crypto fraud for the entire year 2022 should be $516.8 million. 

Not only that, the study highlights that the most successful approval phishing address has likely stolen $44.3 million from thousands of victim addresses. 

Chainalysis and crypto fraud: tips to avoid falling into the approval phishing trap

Chainalysis, the blockchain data platform that provides software, services, and research, has also explored how to address the problem of crypto fraud resulting from approval phishing. 

Through its analysis scheme of the addresses involved in this technique, Chainlysis invites crypto-exchange compliance teams to monitor the blockchain. 

The goal is to identify phishing suspects with a strong exposure to associated destination addresses.

Not only that, more generally, the blockchain platform invites the entire industry to work to educate users not to sign suspicious approval transactions, or to have more awareness of what they are granting.

Phishing attacks and crypto crime

The phishing technique for crypto crime attacks is seeing its evolution. In fact, this romantic phishing scam with approval is added to other phishing techniques such as email campaigns. 

In this regard, last November, email phishing campaigns targeted OpenSea’s NFT marketplace and were aimed at both platform customers and developers.

In this case, while OpenSea has not been hacked in any way, users have received emails from a “fake OpenSea” containing harmful links. Users have reported everything on social media, showing evidence of it. 

On the contrary, however, the phishing attack that occurred in early September targeted Vitalik Buterin’s X account, the co-founder of Ethereum, and resulted in the theft of $700,000 from users.

And indeed, Buterin’s compromised X account was used to promote a fake commemorative NFT coin. Users were invited to mint these NFTs with a limited-time offer. 

Obviously, the provided link led to a phishing website that posed a significant threat to unsuspecting victims, using the “Pink drainer software” tool. 

Among the stolen goods, there was also the theft of a precious Crypto Punk NFT valued at 153 ETH, equivalent to $250,000 at that time. 

Blockchain analytics firm Chainalysis has debunked reports and analyses floating around in the media that inflate the role of cryptocurrencies in terrorism financing.

In a recent report geared toward correcting misconceptions regarding the use of crypto by terrorists to finance their operations, Chainalysis data revealed that digital assets play a minor role in the activity.

Correcting Misconceptions

Chainalysis pointed out that while some terrorist organizations, including Hamas, Jihad, and Hezbollah, raise and transfer funds using crypto, these transactions make up a small fraction of the already limited volume of illicit crypto transactions.

“Terrorism financing is a very small portion of the already very small portion of cryptocurrency transaction volume that is illicit,” Chainalysis said.

The report noted that terrorist groups have historically used traditional fiat-based methods like financial institutions, hawala, and shell companies as their primary financing channels and will likely continue.

Chainalysis emphasized that the transparency of blockchain transactions makes it less suitable for terrorists, which is a major reason why Hamas stopped accepting Bitcoin donations. This transparency allows law enforcers to track the origin and destination of every transaction on the blockchain, a feat that is almost impossible to accomplish with cash transfers.

Addressing Wrong Estimation Methodologies

The report further addressed the flaws in analyzing crypto flows into terrorists’ accounts. Following the recent attack by Hamas on Israel, several reports on the estimated amount of crypto used to finance the group’s operations have surfaced.

However, Chainalysis stressed that estimates of crypto-related terrorism financing are often inflated when analysts include all transactions processed by intermediary service providers and not just those directly tied to terrorist groups.

The report warned that while large sums of crypto may appear linked to terrorists, a significant portion of these funds are unrelated. To improve anonymity, most service providers pool multiple transactions from different users. Thus, tracing such transactions can result in inaccurate estimates.

The report cited an example of a wallet linked to terror financing with about 20 suspected service providers as counterparties. On one of the counterparties, the firm discovered multiple transactions involving huge amounts of crypto, over $82 million.

Chainalysis pointed out that it would be wrong to conclude that all the funds were raised for terrorism financing. Upon further investigation, the analytics firm discovered that approximately $450,000 worth of crypto from the known terror-affiliated wallet was transferred through this counterparty.

The report also encouraged investigators to consider the role of service providers as they can facilitate the movement of terrorism-related funds, knowingly or unknowingly. Meanwhile, earlier this week, the Israeli government disabled over 100 Binance accounts potentially linked to Hamas.

The post Chainalysis Says Crypto’s Role in Terrorism Financing is Exaggerated  appeared first on CryptoPotato.

Coinspeaker Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

Crypto venture capital firm C1 is making strategic moves to acquire private holdings in Australia’s crypto market, according to reports from local media, Australian Financial Review, citing a Pitch Deck seen by the company.

The firm, founded by former Coinbase executives, plans to utilize its $500 million fund to purchase secondary shares from prominent companies and local ventures, preferably those with a minimum valuation of $300 million from series C funding rounds.

C1 Eyes Animoca Brands and Chainalysis for Acquisitions

According to the report, the company has set its sights on Animoca Brands and Chainalysis for potential acquisitions, offering investors discounts ranging between 50% and 80% on their last valuation. The firm is ready to write checks ranging from $20 million to $50 million.

Animoca Brands, once listed on the ASX, has transformed into a $7.8 billion private entity since its exit, drawing interest from C1, which is offering to purchase shares at a significant discount. Similarly, Chainalysis, valued at $8.4 billion in 2022, has about $30 million of secondary preferred shares available at a discounted price, according to C1.

The move comes as the crypto market is experiencing a resurgence, fueled by optimistic sentiments around Bitcoin’s (BTC) value surpassing $44,000 for the first time in two years. Anticipation of US regulators approving a BTC spot ETF in January and a technical upgrade to the Bitcoin network in May adds to the positive outlook, attracting attention from institutional players like C1.

The company believes the crypto industry presents highly appealing valuations in the secondary market, given the prevailing market conditions in both the public and private sectors.

“Due to current market conditions in the public and private markets, hyperinflation, and rising interest rates, we believe the digital assets market offers very attractive valuations in the secondary market,” the desk reads.

Despite reports suggesting C1’s planned acquisitions, Dr. Najam Kidwai, a senior executive at C1, has refuted the claims, noting that the venture capital firm has not met any of the companies for potential acquisitions.

“C1 did not authorize this article, and we have not met with either company directly as of this time,” Kidwai said.

Australian Government Adopts New Measures to Regulate Crypto

Australia’s recent regulatory developments in the crypto space coincide with C1’s endeavor to acquire private holdings in the country. In response to the FTX collapse last year, the government has implemented new measures to safeguard consumer interests.

These include a proposed regulatory regime, with an estimated timeline stretching to 2025 for Australian digital asset platforms to obtain operational licenses. Additionally, tax guidelines have been revised to extend capital gains tax to wrapped tokens.

Moreover, authorities have affirmed their decision to defer the introduction of a central bank digital currency (CBDC) for several more years. These regulatory initiatives reflect the government’s commitment to addressing challenges and ensuring a secure and regulated environment for crypto activities in Australia.

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Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

India leads in global grassroots crypto adoption, surpassing countries with higher trading and mining activities, securing 2nd place in raw value received.

Global crypto adoption has declined over the last 2 years, but India’s adoption remains robust despite regulatory challenges.

Indian investors face high taxes, encouraging offshore exchange usage, and stablecoins gain popularity in Pakistan due to economic instability.

Global Crypto Adoption Index Recently Published by Chainalysis

India has claimed the top rank in grassroots cryptocurrency adoption, according to the 2023 Global Crypto Adoption Index recently published by blockchain analytics platform Chainalysis. This indicator, which appears in Chainalysis’ yearly ‘Geography of Cryptocurrency’ report, evaluates cryptocurrency acceptance among the broader population rather than just transaction volumes.

Share of Web Traffic

 

Majority Of India’s Crypto Traffic Goes To Centralized Exchanges 

In this indicator, India ranked higher than other countries with significant amounts of bitcoin trading and mining activity. Furthermore, when the top countries were examined based on the raw estimated cryptocurrency value received between July 2022 and June 2023, India came in second place. 

According to the Chainanalysis research, India got approximately $250 billion in cryptocurrency value over the past year, trailing only the United States, which received approximately $1 trillion in cryptocurrency value during the same period.

India ranked first in the overall index ranking, second in the centralized service value received ranking, third in the retail centralized service value received ranking, and fifth in the P2P exchange trade volume rating. Nigeria, Vietnam, the United States, Ukraine, the Philippines, and Indonesia follow India. 

Global Crypto Index

 

How Chainalysis Calculated Crypto Adoption?

Chainalysis estimates transaction volumes for various types of cryptocurrency services and protocols to measure global cryptocurrency adoption. This volume is computed using regional traffic on websites that offer crypto services and protocols. Despite the fact that online traffic is not a good measure of total crypto usage, it allows Chainalysis to add layers to the overall trustworthiness of its data, which is further supported by trends documented in millions of online 3 transactions.

Chainalysis also works with local cryptocurrency specialists and operators around the world, according to the official report. This consultation process adds assurance and validity to their methodology for assessing worldwide cryptocurrency adoption.

Read Also: India Undertakes Cyber Police Training To Tackle Crypto Crimes

Global Adoption Declines While India Moves Ahead

According to the survey, worldwide crypto use in the country has decreased dramatically over the last two years. After reaching an all-time high in Q1 2021, crypto usage continued to fall, reaching its lowest point in the fourth quarter of FY2023. Despite slight advances in adoption rates over the last two quarters, it could not get any closer to the old numbers. 

Despite the prevalence of acute FOMO in the business as a result of rising fears of a worldwide recession, crypto adoption in India has continued to expand. This finding from the Chainalysis analysis may come as a surprise to many, given that the Indian government already taxes domestic investors left, right, and center. 

Crypto Value

 

However, this could also be due to Indian investors’ lack of exposure to the major crypto losses of 2022, such as the huge FTX collapse. According to the graph below, Chainalysis studies show that lower middle income countries, including India, improved significantly after Q2 2022 and were able to maintain the levels until Q2 2023. 

On the other side, high-income countries such as the United States and other European countries have seen a reduction. According to the research, institutional adoption in the region appears to have increased, with transactions valued at $1 million or more accounting for 68.8% of total transaction volume, up from 57.6% in the previous time period. 

Despite tax law uncertainties, there has been an unprecedented surge in transaction volume.

According to the Chainalysis analysis, India has surpassed some of the world’s richer countries to become the second largest crypto market. 

Unprecedented Increase In Transaction Volume Despite Ambiguity In Tax Laws

According to the research, “India leads the world in grassroots adoption…but perhaps even more impressively has become the second-largest crypto market in the world by raw estimated transaction volume, beating out several wealthier nations.” 

According to the report, “India taxes cryptocurrency activity at a much higher rate than most other countries, with a 30% tax on gains — a rate unique to crypto Central & Southern Asia and Oceania 56 and higher than the country’s tax rate on other investments such as equities.”

Along with that, Indian consumers must pay an additional 1% tax on all transactions when using Indian centralized exchanges, which may be one of the reasons why Indian investors prefer offshore exchanges to save that 1% fee on every transaction. 

The data above shows the gradual increase in traffic from Indian IP addresses on foreign exchanges, indicating that more Indian users are visiting international exchanges and performing transactions. 

The survey also emphasizes the appeal of stablecoins in Pakistan due to the country’s very volatile economy. In Pakistan, stablecoins are utilized as a hedge against the country’s constantly failing native currency and unpredictable inflation. 

Conclusion

As stakeholders in the cryptocurrency business ask the Indian government to adopt comprehensive cryptocurrency rules, they highlight the potential benefits for entrepreneurs and investors. 

Despite the government’s reservations about the growing nature of finance, crypto usage in India is increasing on a daily basis, paving the way for the establishment of comprehensive and industry-centric legislation in the future. 

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

The post India Leads Grassroot Level Global Crypto Adoption Index: Chainalysis appeared first on BitcoinWorld.

Chainalysis, a leading firm in blockchain analytics, unveiled its 2023 Global Crypto Adoption Index on September 12, 2023. This new index is part of the company’s forthcoming “2023 Geography of Cryptocurrency Report,” scheduled for release in October 2023.

Based on the blog post Chainalysis published yesterday, the primary aim of the index is to amalgamate blockchain-based data with real-world metrics to identify the countries where ordinary citizens are most actively engaging with cryptocurrencies. The index is not focused on countries with the largest transaction volumes but aims to spotlight nations where the general populace is most involved in crypto activities. The index is designed to measure the extent to which people in different countries are investing a significant portion of their wealth in digital assets.

The Global Crypto Adoption Index comprises five distinct sub-indexes, each reflecting different aspects of cryptocurrency usage in various countries. The index ranks 154 countries based on available data for each sub-index. These rankings are then adjusted according to factors such as population size and purchasing power. The geometric mean of each country’s ranking across all five sub-indexes is calculated and normalized on a scale from 0 to 1 to determine the overall rankings. A score closer to 1 indicates a higher rank.

To estimate transaction volumes for different types of cryptocurrency services and protocols, Chainalysis relies on web traffic data. Although the firm acknowledges that this method has limitations, such as the use of VPNs by some users, it believes that the sheer volume of data analyzed minimizes any inaccuracies. The index is also cross-verified with local cryptocurrency experts to enhance its reliability.

These five sub-indexes are

Centralized Exchanges Value Received, Weighted by PPP Per Capita: This sub-index ranks countries based on the total cryptocurrency activity on centralized exchanges, adjusted for the average wealth of residents in each country.

Retail Value Received at Centralized Exchanges, Weighted by PPP Per Capita: This metric focuses on non-professional, individual users and their activity on centralized platforms, specifically for transactions under $10,000.

P2P Exchange Trade Volume, Weighted by PPP Per Capita and Internet Users: This sub-index emphasizes the importance of peer-to-peer trading in emerging markets and is adjusted for the average wealth and internet usage in each country.

DeFi Protocols Value Received, Weighted by PPP Per Capita: This sub-index aims to highlight countries where decentralized finance (DeFi) plays a significant role in financial activities.

Retail Value Received from DeFi Protocols, Weighted by PPP Per Capita: Similar to the second sub-index, this one focuses on individual, non-professional users engaging in DeFi activities.

Here are the top 20 Countries in the 2023 Global Crypto Adoption Index:

Source: Chainalysis

Featured Image via Midjourney

With the increase in digital asset-related criminal activities, Binance has taken important strides to address them. In an event named "Securing the Future of Crypto", Binance joined hands with Chainalysis, taking a collaborative approach to enhance compliance and fight against crypto crime.

Alec Zebrick, APAC Manager of Investigations and Special Programs at Chainalysis, highlighted the rise in ransomware crimes by 10.3% in 2023, with payments potentially reaching $400 million. Unlike other related scams and hacking crimes, which have seen a decrease, ransomware has targeted institutions with substantial financial capabilities.

To counteract these risks, intensified collaborations between public and private sectors are crucial, as per Jarek Jakubcek, Head of Law Enforcement Training at Binance. Binance’s Investigation team voluntarily cooperates with law enforcement agencies globally, delivering practical assistance swiftly. Furthermore, Binance conducts training sessions for these agencies, aiding in the confrontation and seizure of criminal proceeds. Over 70 of such global training sessions have been administered so far in 2023.

The event also saw discussions on AML trends and the dynamics of their landscape. Jarek shared insights about the rising focus on "KYT" (Know Your Transaction), which emphasizes understanding not just the customer but also the origin and destination of funds. Such compliance measures, which were in a nascent stage or non-existent earlier, have seen significant development recently, with many exchanges implementing mandatory KYC and other measures to combat criminal activities.

Minjae Kim, a KNPA investigator, emphasised the importance of a standardized framework for collaboration between law enforcement agencies and private companies like Binance and Chainalysis. The ultimate goal is to ensure greater trust and security in the cryptocurrency sphere - a challenge that requires the collective efforts of both public and private sectors.