Michael Gronager on law enforcement
From 2022 Links London - Fireside Chat with Blair Halliday and Michael Gronager · · Chainalysis
“Law enforcement in the UK is on a steep learning curve when it comes to crypto — there's been a lot more liaison and coordinated engagement between industry and agencies than there was a few years ago.”
On , Michael Gronager, CEO & Co-Founder at Chainalysis, spoke about law enforcement during 2022 Links London - Fireside Chat with Blair Halliday and Michael Gronager on Chainalysis.
About Michael Gronager
In a February 2023 fireside chat, Michael Gronager discussed the decreasing relative usage of crypto for criminal activity, stating it had fallen from around one percent to roughly 15 to 20 basis points. He noted that law enforcement in the UK is on a steep learning curve regarding crypto, with increased liaison and coordination between industry and agencies. Gronager emphasized that regulation must be nuanced and well considered with consumer protection at its heart, warning that pushing crypto into highly restricted access risks driving ordinary users to unprotected venues. He also highlighted Gemini's focus on compliance and licensing, and discussed the potential of the EU's MiCA legislation to provide passporting opportunities for crypto firms. In an April 2022 conversation, Gronager recounted Chainalysis's origin story, explaining that while at Kraken he realized the answer to interpreting blockchain transactions was hidden in plain sight. He described how Chainalysis built the world's largest database of connections between real-world entities and digital identifiers on the blockchain, and how the company created KYT as a transaction-monitoring capability that surfaces only suspicious behavior to compliance personnel. Gronager noted that the algorithm had become several hundred times better through access to ground-truth data from customers and law enforcement. He also mentioned that newer finance players like Square, Robinhood, and PayPal had made crypto a core part of their revenue and a way to grow wallet share.