Chainalysis noted in a blog post that this year, the cryptocurrency ecosystem has seen many seemingly positive developments.
It indicated that with the U.S. approving spot Bitcoin and Ethereum ETFs and the Financial Accounting Standards Board (FASB) revising fair accounting rules, cryptocurrencies continue to gain mainstream recognition in many ways.
Chainalysis also mentioned that, so far this year, the funds flowing into 'legitimate' services are at the 'highest level' since 2021 (the last peak of the bull market). It pointed out that the funds from illegal activities have decreased by '19.6%, from $20.9 billion to $16.7 billion, indicating that the growth rate of legitimate activities is faster than on-chain illegal activities.'
These signs suggest that cryptocurrencies will continue to be 'adopted globally,' which is also reflected in Japan's crypto ecosystem. Overall, Japanese services have a 'generally low exposure' to global illegal entities, such as sanctioned entities, dark web markets (DNM), and ransomware services, because most Japanese services are primarily aimed at Japanese users.
However, the report clarifies that this does not mean Japan is 'completely immune to crypto-related crimes.' Public reports, including those from Japan's Financial Intelligence Unit (FIU) JAFIC, emphasize that cryptocurrencies pose a 'significant money laundering risk.' Chainalysis further points out that while Japan's exposure to international illegal entities may be limited, the country 'does not lack its local challenges. Off-chain criminal entities utilizing cryptocurrencies are common, but often go unnoticed.' (Crowdfund Insider) #pepe
