SPACE

Chainalysis: So far this year, illegal activity funding in the crypto space has decreased by 19.6% to $16.7 billion, indicating that the growth rate of legitimate activities is outpacing that of on-chain illegal activities

ChainCatcher news, Chainalysis pointed out in a blog post that there have been many seemingly positive developments in the cryptocurrency ecosystem this year.It noted that with the approval of spot Bitcoin and Ethereum ETFs in the U.S. and the Financial Accounting Standards Board (FASB) revising fair accounting rules, cryptocurrencies continue to gain mainstream recognition in many ways.Chainalysis also mentioned that the funds flowing into "legitimate" services so far this year are at the "highest level" since 2021 (the last peak of the bull market). It pointed out that illegal activity funds have decreased by "19.6%, from $20.9 billion to $16.7 billion, indicating that the growth rate of legitimate activities is outpacing 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, Japan's services have a "generally lower exposure to global illegal entities, such as sanctioned entities, dark web markets (DNM), and ransomware services, as most Japanese services primarily target Japanese users."However, the report clarifies that this does not mean Japan is "completely immune to crypto-related crime," with public reports including Japan's Financial Intelligence Unit (FIU) JAFIC emphasizing that cryptocurrencies pose a "significant money laundering risk." Chainalysis further pointed out that although Japan's contact with international illegal entities may be limited, the country "is not without its own local challenges. Off-chain criminal entities utilizing cryptocurrencies are common but often remain unknown." (Crowdfund Insider)

MARA: Controlling key resources such as Bitcoin block space and hash rate could have profound implications for the financial sovereignty of the United States

ChainCatcher news, Bitcoin-listed mining company MARA stated that controlling key resources such as Bitcoin's block space and hash rate (the pillars of the network) could have profound implications for America's financial sovereignty and its ability to maintain global influence in the digital age. It called on the U.S. government to take decisive action to address the challenges posed by Bitcoin and seize opportunities, while implementing the following strategic measures:Create a U.S. Bitcoin Strategic Reserve. The U.S. should acquire Bitcoin as a strategic reserve asset. By holding Bitcoin, similar to the U.S. being a major holder of gold, America will ensure its transactional capability when confidence in the dollar weakens globally;Invest in domestic Bitcoin mining. The U.S. should prioritize expanding its domestic Bitcoin mining operations to increase its share of global hash power. By controlling a larger portion of global hash power, the U.S. can ensure secure access to block space and protect its economic sovereignty;Develop mining technology to promote self-sufficiency. Encourage domestic production of mining hardware (ASIC chips) to reduce reliance on foreign suppliers. This will ensure that the U.S. does not depend on critical infrastructure from hostile nations, thereby enhancing technological self-sufficiency and strengthening national security;Implement supportive policy regulations. Establish clear and comprehensive regulations to provide legal clarity for Bitcoin miners and investors. Offering incentives, such as tax breaks for incorporating renewable energy into mining operations, will further stimulate industry growth, technological advancement, and job creation;Lead global Bitcoin standards. The U.S. should take a leadership role in establishing global standards for decentralized networks. By collaborating with allies and ensuring that Bitcoin remains a neutral, open, and secure platform, the U.S. can promote stability in global financial transactions and prevent the centralization of hash power by hostile nations;Protect national security through hash power control. As competition in Bitcoin mining intensifies, controlling a significant amount of domestic hash power will protect the U.S. from foreign interference. Ensuring a strong share of global hash power can prevent hostile nations from censoring or delaying U.S. transactions, which could have serious economic repercussions.
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