Exchanges Ignore Anti-Money Laundering Regulations...Ultimately Hit with $1 Billion Fine Bomb

▲ US, Cryptocurrency Regulations, Bitcoin (BTC)/AI Generated Image

The focus of virtual asset regulation in the US is rapidly shifting from securities law violations to anti-money laundering (AML) violations.

According to a report by Cointelegraph on April 28 (local time), blockchain security auditing firm CertiK stated in its latest report that AML-related fines reached $1.06 billion in the first half of 2025. This analysis suggests a shift in the central axis of regulatory threats faced by virtual asset companies. In the past, disclosure-centric securities law violations were the main target of scrutiny. Now, operational failures in anti-money laundering controls have emerged as a greater risk factor.

Enforcement activities led by the US Securities and Exchange Commission (SEC) have significantly decreased. The volume of SEC fines related to virtual assets plummeted by 97%, from $4.9 billion in 2024 to $142 million in 2025. In contrast, the US Department of Justice (DOJ) and the Financial Crimes Enforcement Network are intensely targeting transaction monitoring. Regulatory authorities are rigorously addressing issues such as operating without a license and deficiencies in financial surveillance systems.

Major fines imposed this year have focused on AML violations. In February, OKX agreed to pay $504 million for reasons including operating an unlicensed money transmission business. KuCoin also paid a fine of $297 million in January. Authorities now prioritize actual compliance with financial regulations over whether a token constitutes a security. The focus of enforcement has shifted from information disclosure to failures in operational controls.

The trend of strengthening regulations is a global phenomenon. AML-related fines in Europe surged by 767% year-on-year. Regulatory authorities in the Asia-Pacific region also prefer stringent administrative measures, such as license revocation, over monetary penalties. As the transaction volume associated with sanctioned entities increased by over 400%, the importance of transaction monitoring has grown even further. New legal frameworks, such as the stablecoin regulation act GENIUS and the virtual asset regulation act MiCA, are also fully operational.

Standards for financial institutions holding virtual assets are also becoming stricter. The Basel Committee on Banking Supervision plans to impose high capital surcharges on banks holding Bitcoin (BTC) and Ethereum (ETH). Smart contract security auditing is also becoming an essential compliance requirement. According to CertiK, 80% of the top 100 protocols that suffered hacking incidents had not undergone official security audits in advance. 89.2% of the total damage occurred in entities that had not received security audits.

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