IKP FOCUS (APRIL 11th): Illicit Finance + FATF Meeting prep

The next IKP WG Meeting on the 11th of April will be focused on Illicit Finance.

I’ll use this thread to do updates for the community here:

Privacy and discoverability will also be discussed.

Next week we will post the meeting reports and stories on this session at Block 10 and reach out to participants to continue the conversation on the 11th.

@Amanda_Wick @shinichiro.matsuo @ts1433

Privacy Discoverability

Illicit Activity

Onchain Analysis


The Murky Waters of Illicit Activities in Crypto: A Comprehensive Dialogue

The dynamic world of cryptocurrencies offers unparalleled opportunities for financial innovation but also presents a fertile ground for illicit activities. As we dive deeper into the crypto ecosystem, the importance of understanding, identifying, and combating these activities cannot be overstated.
A recent discussion among industry experts shed light on the multifaceted nature of illicit activities within the crypto space. The conversation highlighted several key points:

Definitional Challenges: The definition of illicit activities varies across jurisdictions, adding complexity to regulatory and compliance efforts.

The Role of Blockchain Analytics: These companies are at the forefront of providing data that is critical for law enforcement and compliance officers, emphasising the need for accuracy and timeliness in data attribution.

Compliance and Law Enforcement: The practical challenges faced by these professionals underscore the necessity for high-quality data and legal clarity to effectively combat potential crimes.

The Need for Common Standards: Establishing standardised practices for categorizing illicit activities could improve analytics tools’ interoperability and compliance processes efficiency.

Balancing Regulation and Innovation: The discussion also touched upon privacy concerns, particularly regarding the use of mixers, and the need for ongoing dialogue to ensure innovation is not stifled by regulatory measures.
As we reflect on these discussions, it’s clear that the path forward requires continued collaboration among regulators, industry players, and analytics companies. The development of common standards and practices is crucial for enhancing the efficacy of compliance processes and ensuring the crypto ecosystem can grow in a responsible manner.

:globe_with_meridians: I’d like to invite you to join the conversation and share your insights progressing the work we have embarked on with this workshop conversation at Block # 10.

Blockchain Governance Initiative Network IKP WG:
We will be hosting a workshop on the Thursday, 11th April⋅ 11:00am AEST (1am UTC / 10am Tokyo time)

For this meeting, the group will focus on continuing this conversation with those on the front lines of fighting illicit finance in blockchain and digital assets. (compliance officers, regulators, industry participants) in a multistakeholder dialogue.

It’s only getting more complex as the market grows in unique ways, so we should find a way to share insight more regularly than block meetings and the minutes after a panel discussion.

Please contact me for an invite to the bi-weekly call or join the bgin.discourse.group

I won’t be able to participate this week either - the slot is unfortunately not working at all. Can we plan some calls on different timeslots from time to time?

A note on this thread to let you know we’ve updated the time slot to: 11 am UTC

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