AML in Cryptocurrencies: How to Protect Assets

Why is AML Screening Important?

AML screening has become an integral part of the cryptocurrency world. Its goal is to prevent interaction with "dirty crypto"—assets associated with money laundering, terrorist financing, and other illegal operations. For example, transferring funds to a wallet with sanctions-related tags can lead to account blocking or even legal consequences.

According to Chainalysis reports, it was initially estimated that $22.2 billion was transferred from addresses linked to illicit activity in 2023; subsequently, Chainalysis updated its 2023 estimate to approximately $46.1 billion. This highlights the scale of the problem and the need for regular checks.

How to Protect Yourself from Risks?

Risks in the cryptocurrency market affect both private users and businesses. Asset freezes, denial of service, or legal consequences are just some of the threats. Below are the main protective measures.

1. Check addresses before transferring

Before sending funds, always perform an address check using blockchain analytics tools such as Chainalysis, Elliptic, or CipherTrace. This will help identify whether the address is associated with illegal operations or sanctions.

Address check checklist:

• Paste the address into the analytics service.
• Check transaction history for suspicious connections.
• Ensure there are no transfers from mixers or unauthorized sources.

2. Comply with KYC rules

Use platforms that require identity verification (KYC). This minimizes the risk of interacting with "dirty crypto." Exchanges with transparent AML policies, such as Binance and Coinbase, provide additional security guarantees.

3. Store funds securely

For long-term storage, use hardware wallets such as Ledger or Trezor. Avoid storing large amounts on exchanges, as they may be subject to hacks.

4. Stay updated on new regulations

Laws in the cryptocurrency sphere are constantly tightening. For example, the MiCA regulation was adopted in 2023 and took effect in stages: key provisions, including rules for stablecoins (Asset-Referenced Tokens and E-Money Tokens), began to apply on June 30, 2024, and the full application of several provisions occurred on December 30, 2024. MiCA requires stablecoin providers to strictly comply with AML and reporting rules.

5. Diversify assets

Do not invest all your funds into a single asset or platform. Split your capital between several wallets and projects. This reduces the risk of a total loss of funds in the event of an account block.

Practical Benefits of AML Screening

AML screening is not just a tool, but a necessary protection for your funds. It allows you to:

• Avoid the blocking of assets associated with sanctions tags.
• Comply with legal requirements and maintain access to crypto exchange services.
• Reduce reputational and operational risks.

As discussed in detail in the article "BitOK launched the ECCO educational program", training in crypto-analytics and the basics of AML compliance helps users and businesses build effective defense measures.

Conclusion

AML screening is your shield in the world of cryptocurrencies. With the growth of global fines ($19.3 billion in 2024) and regulatory requirements, asset protection is becoming a primary task. Use trusted platforms, follow KYC rules, check addresses before transfers, and study new regulations.

Consider professional training, such as the BitOK ECCO course, to deepen your knowledge and prepare your team for market challenges. A responsible approach to security is the key to success in the cryptocurrency world.