Opinion: Slava Demchuk, co-founder and CEO of Amlbot
Asia’s encryption lost more than 1.5 billion people in the first half of 2025. This is more than in 2024, including Southeast Asia Bibit and pig slaughter fraud. Most engines are built around Western money laundering typology. They miss out on custom laundering channels tailored to each region that are appearing throughout Asia.
Blockchain analytics companies will need to build customized regional risk libraries and work with local law enforcement to combat the level and caliber of cryptocurrency-enabled crime in Asia. Not addressing this means that criminal funds still lurk indistinguishable and can disrupt the highly integrity of the global compliance system.
Western tools, eastern loopholes
Global Risk Engines are most commonly targeted to mixers, tumblers and centralized on-ramps in North America and Europe. However, Asian financial basements use a variety of weapons, including Thailand’s unlicensed OTC desk, the Philippines’ mobile money corridor, and the informal peer-to-peer parking methods that do not cause the red flag seen through today’s common compliance lens.
With corresponding flows, these wallets build wallet clusters and flow patterns that avoid legacy detection rules. Revenues are often left idle or are carefully layered. It then becomes a distributed exchange, and the washing cycle is slid with a typical compliance trigger.
Local issues require local maps
The ability to effectively monitor crime in APAC is based on jurisdiction-level expertise. This includes typical tactical mapping, such as circular transactions through Singapore’s shell companies and tiered transactions with Indonesia’s e-wallets. Analytics providers should ingest locally published on-chain data and wait to reverse engineer them when it’s too late, rather than mimicking real-time laundry innovations.
Building a local risk library – wallet cluster flags, known bad actors, unique entries/exit lamps – are basic. These tools will not be tacked after the fraud is worthy of coverage.
Building a bridge with law enforcement
Data alone won’t stop crime. Local regulators are usually not familiar with blockchain, so private analytics companies require legal authority. This is where public-private partnerships (PPPs) are important. PPP may formally allow secure data sharing, collaborative training, and real-time alerts.
Related: North Korea’s Crypto Hackers Tap ChatGpt, Malaysia Road Money Siphoned: Asia Express
These partnerships have already paid off. In countries like Thailand and Malaysia, law enforcement is using real-time dashboards and analytics software to freeze funds within hours of reported scams, compared to past weeks or months. These are not hypotheses. They operate efficiency saving millions.
Enforcement depends on trust and development
Retail participation in crypto is booming in markets such as Vietnam, Thailand and India, but its growth is exposed without enforcement trust. We must encourage investors to stay in a market where fraud is spreading. Public-private collaboration demonstrates its commitment to protecting consumers and enabling cooperative rules to be created, supporting long-term engagement across retail and institutional market participants.
Critics say local compliance is at risk. Various global standards, on-chain privacy, and government overreach are all real issues. Designs that provide privacy, such as short-term data retention, permitted audit trajectories, and publishing enforcement reports, can protect your privacy and legal accountability.
Local expertise wins
Crypto companies affiliated with analytics providers with hyperlocal compliance capabilities will earn delegations from hedge funds, banks and custodian banks investing in the APAC region. The agency seeks confidence in blockchain hygiene, and proves that vendors understand the terrain. Vendors relying on “One Size Fit” compliance tools risk losing exchange lists, investor trust and local access.
To drive this model, industry coalitions need to work with Analytics vendors. The vendor will jointly develop compliance standards across APAC. The project involves hiring local experts for local financial activities and the development of a jurisdiction-specific risk library.
Establishing public-private partnerships with regulators is equally important. They grant immediate cooperation and enforcement. The PAN-APAC compliance architecture should also include transparency via quarterly impact reports to assess the effectiveness of the model in preventing regional money laundering.
The subsequent surges depend on trust
Asia is at a crossroads. Without regionally coordinated risk detection and intersector collaboration, we are at risk of becoming something like “Wild West.” But with the right foundation, it could become a leader in building a compliant, innovation-focused crypto economy. Speaking the language of Asian financial underground, and partnering with local enforcers, is the only way to regain trust and unleash the next chapter of growth.
Opinion: Slava Demchuk, co-founder and CEO of Amlbot.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
