KEYTAKEAWAYS
- Digital assets are increasingly used for financial crimes, with state actors and organized groups exploiting cryptocurrencies, resulting in billions lost to scams.
- Illicit funds are flowing through centralized exchanges and DeFi protocols, highlighting the need for improved tracking and security measures in the crypto industry.
- The crypto industry must prioritize responsible innovation, integrating security and integrity into new developments to build trust and ensure financial integrity.
CONTENT
Explore insights from WebX2024’s expert panel on crypto financial crimes. Learn how industry leaders are tackling security challenges and shaping the future of digital assets and blockchain technology.
As the sun rose over The Prince Tower Park Tokyo on August 28, 2024, the air buzzed with anticipation. WebX2024, the cutting-edge conference on digital assets, was kicking off with a bang. The opening panel, “Detecting and Preventing Financial Crimes: The Battle for Trust and Financial Integrity,” promised to dive deep into the murky waters where cryptocurrency innovation meets criminal exploitation.
>>> Read more: WebX 2024 in JAPAN: A Two-Day Gathering of Companies Venturing into Web3, Led by the Anime Industry
MEET THE MASTERMINDS
Beju Shah, Head of Nordics for the Bank for International Settlements’ (BIS) Innovation Hub., Chengyi Ong, Head of Policy APAC at Chainalysis, Una Softic, Managing Director of Intertangible, Hiroshi Ozaki, Executive Advisor at KPMG AZSA, left to right, during the conference at WebX Tokyo 2024, Aug 28, 2024.
(Source: CoinRank)
The panel brought together a dream team of experts:
- Beju Shah: The visionary from the Bank for International Settlements’ Innovation Hub
- Chengyi Ong: Chainalysis’s sharp-eyed policy guru for Asia-Pacific
- Hiroshi Ozaki: KPMG’s advisor with a storied past at Japan’s Financial Services Agency
- Una Softic: Intertangible’s Multi-Faceted Innovator Steering Global Tech Consultancy
Each brought a unique perspective to the table, ready to dissect the crypto crime conundrum.
CRYPTO: THE NEW FRONTIER FOR FINANCIAL CRIMES
Beju Shah didn’t pull any punches. He painted a vivid picture of a digital Wild West, where state actors and organized crime groups are having a field day. “Digital assets are widely used for financial crime,” Shah declared, dropping a bombshell about a certain state funneling crypto-stolen funds directly into their military coffers.
But it’s not just nation-states getting in on the action. Shah revealed a staggering $75 billion lost to crypto scams in recent years, wiping out life savings faster than you can say “blockchain.”
FOLLOWING THE DIGITAL MONEY TRAIL
Chengyi Ong from Chainalysis brought the data to back up these claims. Their latest report showed a clear trend: illicit funds are flowing through centralized exchanges like water through a sieve, with DeFi protocols quickly becoming the new laundromat of choice for digital dirty money.
Ong’s team tracked a mind-boggling $24 million in illicit transactions last year alone. But here’s the kicker – that’s likely just the tip of the iceberg. The blockchain may be transparent, but criminals are getting craftier at hiding their tracks.
JAPAN: A MICROCOSM OF GLOBAL TRENDS
Hiroshi Ozaki zoomed in on Japan, offering a sobering case study. Credit card fraud and internet banking schemes have skyrocketed, with billions of yen vanishing into the crypto ether. Ozaki’s revelation that over half of these ill-gotten gains are funneled through domestic crypto exchanges sent a chill through the room.
THE INDUSTRY’S MOMENT OF TRUTH
The panel didn’t just point fingers – they called for action. The message was clear: the crypto industry needs to grow up, and fast. Reckless exchanges and unchecked innovation are tarnishing the promise of digital assets.
Chengyi Ong challenged the audience: “How do we build in a responsible way?” It’s not just about following rules – it’s about baking security and integrity into the very DNA of crypto innovations.
A RALLY CRY FOR THE FUTURE OF FINANCE
As the panel wrapped up, the energy in the room was palpable. The speakers had laid bare the challenges, but also illuminated the path forward. The battle for trust and financial integrity in the crypto space is far from over, but with collaboration, innovation, and a hefty dose of responsibility, the industry has a fighting chance.
The message from WebX2024 was clear: the future of finance is digital, but only if we can keep it clean. As attendees filed out, the conversation buzzed with ideas, strategies, and a renewed commitment to building a crypto ecosystem that’s as secure as it is revolutionary.
