The blockchain industry is constantly evolving and facing new challenges in terms of security, compliance, and regulation. To keep up with the latest trends and developments, it is important to have a comprehensive and reliable source of information and analysis. That is why Beosin, a leading blockchain security and compliance company, has released its Q3 2023 Global Web3 Security Report, AML Analysis & Crypto Regulatory Landscape.
The report provides an overview of the global Web3 security incidents, anti-money laundering (AML) analysis, and crypto regulatory landscape in the third quarter of 2023. It also provides detailed case studies, data analysis, and insights on how to improve Web3 security and compliance. Here are some key takeaways from the report:
- Web3 security incidents increased by 23% compared to the previous quarter, with a total loss of $2.7 billion. The most common types of attacks were smart contract exploits, DeFi hacks, and NFT thefts. The report analyzes some of the major incidents, such as the Poly Network hack, the Cream Finance exploit, and the Anomica Brands NFT theft. It also provides recommendations on how to prevent and mitigate such attacks, such as using formal verification, code auditing, bug bounties, and insurance.
- AML analysis revealed that illicit crypto activities accounted for 0.34% of the total crypto transactions in Q3, down from 0.4% in Q2. The top three sources of illicit funds were darknet markets, ransomware, and scams. The report examines some of the prominent cases, such as the Colonial Pipeline ransomware attack, the Axie Infinity phishing scam, and the KuCoin exchange hack recovery. It also provides suggestions on how to enhance AML compliance, such as using blockchain analytics tools, implementing KYC/AML policies, and cooperating with law enforcement agencies.
- Crypto regulatory landscape witnessed significant developments in various regions, such as the US, China, Europe, and India. Some of the major events were the approval of the first Bitcoin ETF in the US, the crackdown on crypto mining and trading in China, the launch of the EU’s Markets in Crypto-Assets (MiCA) regulation, and the introduction of a new crypto bill in India. The report discusses the implications and impacts of these events on the blockchain industry and provides guidance on how to adapt to the changing regulatory environment.