Perspective by: Slava Demchuk, co-founder and CEO of AMLBot
Asia’s cryptocurrency landscape has lost over 1.5 billion in the initial half of 2025 — surpassing the total from 2024, encompassing Bybit and pig butchering scams in Southeast Asia. Most systems are designed around Western money laundering methodologies. They overlook tailored laundering pathways customized for each locale, which are emerging throughout Asia.
Blockchain analysis firms must craft localized risk frameworks and partner with regional law enforcement to tackle the extent and sophistication of cryptocurrency-related crime in Asia. Ignoring this issue means illicit funds will continue to hide in plain view, undermining the integrity of global compliance frameworks.
Western instruments, Eastern gaps
The global risk framework predominantly zeroes in on mixers, tumblers, and centralized on-ramps in North America and Europe. However, the Asian financial underground employs alternative strategies: unauthorized OTC desks in Thailand, mobile money channels in the Philippines, and informal peer-to-peer parking methods that evade detection through current compliance standards.
With these associated flows, these wallets form clusters and flow patterns that bypass traditional detection protocols. Profits are frequently left dormant or discreetly layered before reaching decentralized exchanges, enabling the laundering loop to escape general compliance alerts.
Localized issues necessitate regional roadmaps
The capability to effectively track crime in APAC relies on jurisdiction-specific expertise. This includes mapping conventional strategies, such as circular trading through Singaporean shell companies or layering transactions using Indonesian e-wallets. Analytics providers must absorb locally sourced on-chain data and maintain evolving typologies to reflect real-time laundering trends instead of waiting to reverse engineer them when it’s too late.
Creating regional risk libraries — identifying wallet clusters, known bad actors, and distinctive entry/exit points — is essential. These tools should be integrated into enforcement mechanisms, rather than added post hoc when a scam becomes prominent in the news.
Forging partnerships with law enforcement
Data alone does not prevent crime. Local regulators often lack proficiency in blockchain, and private analytics firms need legal authority to take action. This is where public-private partnerships (PPPs) are vital. PPPs can facilitate secure data sharing, shared training programs, and real-time notifications.
Related: North Korea crypto hackers utilize ChatGPT, Malaysia road money siphoned: Asia Express
These collaborations are already yielding results: In nations like Thailand and Malaysia, law enforcement has utilized real-time dashboards and analytics tools to freeze assets within hours of fraud reports—compared to weeks or months previously. These are not mere hypotheticals; they represent operational efficiencies that conserve millions.
Enforcement as the foundation of trust and advancement
Retail engagement in cryptocurrency is thriving in markets like Vietnam, Thailand, and India, but this expansion is vulnerable without enforcement assurance. It is crucial to motivate investors to remain in markets rife with fraud. Public-private collaboration signifies a commitment to consumer protection, enabling rule-making carried out collaboratively, and fostering long-term engagement among retail and institutional market players.
Critics highlight risks in regional compliance. Distinct global standards, privacy concerns in on-chain data, and potential governmental overreach are all legitimate challenges. Privacy-preserving approaches—such as limited data retention, authorized audit trails, and the publication of enforcement reports—can safeguard user privacy while ensuring legal accountability.
Local proficiency prevails
Crypto enterprises collaborating with analytics providers possessing localized compliance capabilities will secure mandates from hedge funds, banks, and custodian institutions investing in the APAC area. Institutions seek assurance in blockchain practices, demonstrating that the vendors comprehensively understand the landscape. Vendors relying on “one-size-fits-all” compliance solutions risk forfeiting their exchange listings, diminishing investor trust, and losing regional opportunities.
To advance this model, industry coalitions must partner with analytics vendors to collectively develop APAC-wide compliance standards. This initiative should prioritize employing local experts in underground financial activities and creating risk libraries specific to jurisdictions.
Establishing public-private partnerships with regulators is equally crucial; they facilitate swift collaboration and enforcement rights. The pan-APAC compliance structure should also ensure transparency through quarterly impact assessments to evaluate the model’s efficacy in deterring money laundering across the region.
The impending surge hinges on trust
Asia is at a pivotal juncture. Without region-specific risk detection and cross-sector collaboration, it risks resembling the “Wild West”. However, with the right foundations, it could emerge as a leader in building a compliant, innovation-driven crypto economy. Understanding the language of Asia’s financial underground—and cooperating with local enforcement—is the only pathway to restore trust and open the next phase of growth.
Perspective by: Slava Demchuk, co-founder and CEO of AMLBot.
This article is intended for general informational purposes and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
