Title: Increase in Cryptocurrency-Related Crime in the Asia-Pacific Region
According to a recent report by Chainalysis, a leading blockchain data company, cryptocurrency-related crime in the Asia-Pacific region (APAC) has seen a significant increase. The report, titled “2024 Cryptocurrency Landscape Survey,” highlights the growing trend of criminal activities associated with cryptocurrencies in the region.
Hayato Shigekawa, the Director of Solution Architecture at Chainalysis, mentioned in an interview with Cointelegraph that as the adoption of cryptocurrencies rises, they are increasingly being used as a channel for various illegal activities. These activities extend beyond cryptocurrency-related crimes and include drug trafficking, cybercrime, fraud, and financial crimes.
The report reveals that nearly 60% of respondents from the Asia-Pacific region rated their understanding of cryptocurrencies as “limited” or “not very good.” In comparison, only about 25% in North America and Latin America, and 18% in Europe and the Middle East/North Africa region expressed similar sentiments. This lack of understanding contributes to a generally negative perception of cryptocurrencies among people in the Asia-Pacific region. Approximately 67.7% of respondents strongly or somewhat agreed that cryptocurrencies are primarily used for criminal activities.
Although the Asia-Pacific region has slightly fewer cryptocurrency-related crimes compared to other regions, the lack of awareness about this asset class leads to a more negative perception. When asked about whether cryptocurrencies can improve the current financial system, the proportion of respondents in the Asia-Pacific region who disagreed or had no opinion was slightly higher than in other regions.
Chainalysis emphasizes the urgent need for cryptocurrency-related education in the Asia-Pacific region to facilitate wider adoption. They suggest that educating the public about the complexities of this asset class is crucial.
The increase in cryptocurrency-related crimes and the insufficient technological and legal resources available to law enforcement agencies in the Asia-Pacific region have impacted their ability to combat these crimes effectively. More than half of the respondents in the region expressed dissatisfaction with the technological and legal resources available to law enforcement agencies. The data indicates that Latin America and the Asia-Pacific region need to strengthen their technological and human resources to detect and track data on the blockchain and identify criminal activities.
Respondents in the Asia-Pacific region generally believe that cryptocurrency will be involved in a wider range of criminal activities in the next five years, and the number of criminal cases will continue to rise. Law enforcement agencies are making efforts to address this issue.
In addition to technological resources, having effective and up-to-date legislation related to cryptocurrencies is equally important. Hayato Shigekawa, the Director of Solution Architecture at Chainalysis, mentioned that Japan has established legal regulations for the confiscation of digital assets, and Singapore can seize cryptocurrencies and other digital assets based on existing laws. Therefore, apart from technological resources, having relevant legal frameworks is essential for comprehensive management of criminal activities.
Source:
Cointelegraph
Chainalysis
Editor: Yuan-Ting Shao