Michael Gronager, CEO of Chainalysis, recently visited Korea and shared insights into trends in the cryptocurrency market and crime during a press conference commemorating the 10th anniversary of Chainalysis’ founding. Chainalysis, a blockchain data analytics company founded in 2014, provides cryptocurrency fund tracking solutions utilizing blockchain data to more than 1,000 private companies and over 200 public institutions worldwide. At the press conference, Gronager explained that the cryptocurrency market has evolved from its initial instability and has now established itself as an asset class similar to traditional finance. He further noted that the growth of cryptocurrency ETFs is enhancing the transparency and stability of the market. He highlighted the growth of stablecoins as a key factor, emphasizing the continuous development of the cryptocurrency market.
Concerns about cryptocurrency-related crimes were also addressed during the event. Gronager revealed that stablecoins, which are less volatile than Bitcoin and Ethereum, are increasingly being used in criminal activities. He specifically warned that as North Korea’s cyber hacking attacks evolve, the stolen amounts have increased by over 80%, with cryptocurrencies being used in a wide range of crimes beyond simple misuse, including drug trafficking and fraud. To combat these issues, Gronager introduced various crime prevention projects in collaboration with public and private institutions, noting that one such operation, “Operation Spincaster,” prevented damages worth $162 million and uncovered over 7,000 leads.
Additionally, Gronager emphasized that cryptocurrency exchanges should implement security measures on par with those of traditional financial institutions. He pointed out the need for exchanges to increase the percentage of cold wallet storage to securely safeguard user assets, mentioning that Hong Kong and Singapore maintain cold wallet storage rates of 98% and 90%, respectively. Gronager urged Korean cryptocurrency exchanges to aim for these high-security standards, stressing the importance of strengthening security as hacking attacks on centralized exchanges are on the rise.
Lastly, Gronager shared an optimistic outlook on the future of the cryptocurrency market. He cited the rapid growth of cryptocurrency spot ETFs as an example, explaining that the increasing adoption of cryptocurrencies in real-life applications will accelerate integration with the traditional financial system.
