AML crackdown eclipses securities enforcement as crypto’s top regulatory risk: Report

A CertiK report finds anti-money laundering (AML) enforcement has become crypto’s top regulatory risk, with U.S. AML fines totaling $1.06 billion in H1 2025 as authorities shift focus from securities cases. SEC crypto penalties plunged 97% YoY to $142 million in 2025, while DOJ settlements with OKX ($504M) and KuCoin ($297M) underscore the emphasis on transaction monitoring and licensing. Global regulators are tightening prudential rules — notably the Basel cryptoasset standard (effective Jan. 1, 2026) that levies near-100% capital charges on Group 2 assets (including Bitcoin and Ether) — which could deter banks from holding major tokens. Mandatory smart-contract audits and stricter custody, capital and liquidity requirements are also being rolled out, raising compliance costs and potentially slowing institutional adoption and on‑balance‑sheet exposure to large crypto assets.