Author's View: AMLBot Co-founder and CEO Slava Demchuk
In the first half of 2025, the Asian crypto market lost over $15 billion—beyond 2024, including Bybit in Southeast Asia and scams. Many tools rely on Western money laundering models, ignoring the unique money laundering methods found in Asia.
Blockchain analytics firms must establish customized regional risk databases and collaborate with local law enforcement. Otherwise, criminal funds will continue to hide, and the integrity of the global compliance system will be compromised.
Western Tools, Eastern Vulnerabilities
Global risk engines primarily target money laundering activities in North America and Europe, but the Asian financial underground uses different methods: unlicensed over-the-counter desks in Thailand, mobile payment corridors in the Philippines, and peer-to-peer parking methods that do not trigger alerts under general compliance.
Local issues need localized maps
Effective monitoring of crime in the Asia-Pacific requires expertise within jurisdictions, such as circular trading in Singapore shell companies or transactional layering using Indonesian e-wallets.
Building Bridges with Law Enforcement
Data alone cannot stop crime. Local regulators have a limited understanding of blockchain, and private analytics firms need legal authority to act. Therefore, public-private partnerships are crucial; they can formally allow secure data sharing, joint training, and real-time alerts.
These collaborations are yielding results: in Thailand and Malaysia, police have used real-time dashboards and analytics software to freeze funds within hours of reporting fraud, compared to weeks or months in the past.
Law enforcement is the foundation of trust and development
In markets like Vietnam, Thailand, and India, retail participation in cryptocurrency is rapidly growing, but this growth lacks law enforcement confidence; we must incentivize investors to stay in a market full of fraud.
Local Expertise Wins
Crypto companies that partner with analytics providers having local compliance capabilities will gain mandates from hedge funds, banks, and custodial banks investing in the Asia-Pacific region. Industry alliances must work with analytics providers to establish compliance standards in the Asia-Pacific.
Asia stands at a crossroads. Without customized risk detection and cross-sector collaboration, it could become the 'Wild West'; but with the right foundation, it could be a leader in a compliant, innovation-driven crypto economy.
Author's View: AMLBot Co-founder and CEO Slava Demchuk.
This article is for general informational purposes and should not be construed as legal or investment advice. The views expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.