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

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

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

Enforcement activities led by the U.S. Securities and Exchange Commission (SEC) have significantly decreased. SEC fines related to virtual assets plummeted by 97%, from $4.9 billion in 2024 to $142 million in 2025. In contrast, the U.S. Department of Justice (DOJ) and the Financial Crimes Enforcement Network are heavily targeting transaction monitoring. Regulatory authorities are increasingly cracking down on issues such as operating without a license and inadequacies in financial surveillance systems.

Major fines imposed this year have focused on anti-money laundering violations. In February, OKX agreed to pay $504 million for operating an unlicensed money transmission business, among other reasons. 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-over-year. Regulatory authorities in the Asia-Pacific region also prefer stringent administrative measures, such as license revocation, over monetary penalties. With the transaction volume related to sanctioned entities increasing by over 400%, the importance of transaction monitoring has grown further. New legal frameworks, such as the stablecoin regulation GENIUS and the virtual asset regulation MiCA, are also fully operational.

Holding standards for virtual assets in the financial sector 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 audits are also becoming an essential compliance requirement. According to CertiK, 80% of the top 100 protocols affected by hacking incidents did not undergo official security audits beforehand. 89.2% of the total damage occurred in projects that had not received security audits.

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