Cryptocurrency has transformed the financial landscape, offering unprecedented transparency alongside new avenues for illicit activity. One of the most common tactics used by bad actors to obscure the origins of stolen or illicit funds is a method known as a peel chain. This technique involves repeatedly sending small amounts of cryptocurrency to different wallets, creating a complex web that makes it challenging for investigators to trace.
As cryptocurrencies gain mainstream acceptance, governments worldwide face the challenge of creating regulatory frameworks that address the unique characteristics of digital assets while fostering innovation. From outright bans to the adoption of comprehensive frameworks, the approaches vary widely, reflecting differing economic priorities, risk appetites, and levels of adoption. In this blog, we delve into the global landscape of crypto regulation, examining key trends, regional strategies, and the significant shift in the European Union’s regulatory philosophy.
The rapid growth of the crypto asset industry has brought transformative opportunities but also unprecedented regulatory scrutiny. Governments and agencies worldwide are intensifying enforcement actions against crypto firms that fail to comply with Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and sanctions regulations. This article highlights major enforcement cases—including actions against Tornado Cash, Blender.io, Binance, and Cryptex—and outlines practical steps for crypto businesses to strengthen their compliance programs. From transaction monitoring to sanctions screening and risk-based strategies, you’ll learn essential measures to navigate the evolving regulatory landscape and mitigate risks effectively.
In light of the increasing significance of stablecoins and their potential effects on financial systems and consumers, the Financial Services Regulatory Authority (FSRA) has unveiled a detailed regulatory proposal for stablecoin issuers within the Abu Dhabi Global Market (ADGM), Abu Dhabi's International Financial Centre.
The regulatory landscape in Seychelles is undergoing a significant transformation with the introduction of the Virtual Asset Service Providers Bill 2024. This legislation aims to establish a comprehensive regulatory framework for virtual asset service providers (VASPs), addressing the growing concerns of ML/TF risks associated with virtual assets.
The rise of decentralized finance (DeFi) has revolutionized how we interact with cryptocurrencies. However, alongside innovation comes the challenge of mitigating illicit activity. Coin swapping, a core function within DeFi, has emerged as a tool for money laundering, raising concerns about the potential misuse of these platforms. In this blog we’ll review how coin swapping on decentralized exchanges (or DEXs) works and why criminals exploit them to launder stolen funds. We'll also explore real-world examples of hacks where coin swapping played a major role in laundering stolen crypto across blockchains.
Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a fiat currency or other assets. Their core advantage is the price stability that facilitates transactions and participation in decentralized finance. However, their main disadvantages include potential regulatory risks, as increased scrutiny and evolving regulations could impact their usage and acceptance, as well as centralization and transparency issues that pose significant compliance challenges.
Navigating the complexities of Anti-Money Laundering (AML) compliance within cryptocurrency requires a robust understanding of regulatory frameworks. Even more importantly, businesses must have access to an effective AML compliance solution to maintain strong government relations, enhance user trust, and streamline business operations.
