Anti-Money Laundering enforcement has overtaken securities violations as the biggest regulatory risk for crypto firms, with US authorities issuing $900 million in fines in the first half of 2025.
A report by CertiK shows SEC crypto penalties dropped 97% year-on-year to $142 million, marking a shift away from securities-led enforcement.
Instead, regulators are targeting compliance failures such as transaction monitoring and licensing, with major cases including a $504 million settlement with OKX and a $297 million fine for KuCoin.
The shift comes as sanctions-related crypto activity surged more than 400% year-on-year, pushing authorities to prioritise financial surveillance and cross-border compliance.
European AML fines rose 767% over the same period, while Asia-Pacific regulators increasingly rely on licence revocations and operational orders rather than monetary penalties.
The report also highlights tightening global rules, including stablecoin frameworks such as MiCA and the upcoming Basel crypto standards set for implementation in 2026.
CertiK said mandatory smart contract audits are becoming standard as regulators respond to rising exploit risks and infrastructure vulnerabilities across decentralised finance.