Bitcoin price is struggling to break the $90,000 mark amidst global financial uncertainties sparked by Trump’s comments on the US Fed Chair. In an interview, AMLBot CEO Slava Demchuk discusses how compliance standards and blockchain analytics tools can enhance investor confidence and drive the adoption of cryptocurrencies by sovereign entities.
The cryptocurrency market aims to reach a $5 trillion valuation in its next bull cycle, but faces challenges due to increasing security breaches. The CertiK’s Q1 2025 Hacked report reveals that total losses from 197 crypto crime incidents amounted to approximately $1.67 billion, more than triple the losses recorded in the previous quarter. The report highlights the use of sophisticated methods by attackers, such as social engineering and smart contract manipulation, to evade detection.
Demchuk emphasizes the importance of implementing robust security measures to mitigate risks in the crypto space. He warns that compliance tools themselves can be targeted if not properly secured, potentially enabling phishing and illicit activity. AMLBot’s proactive approach includes business-only onboarding tiers, real-time threat modeling, and strict access controls to prevent misuse of compliance infrastructure.
AMLBot’s compliance systems have reportedly prevented over $100 million in potential losses since 2019. By screening wallets for criminal links and using machine learning to detect fraud patterns, the platform has been successful in combating crypto crimes. Demchuk advocates for global compliance measures, such as KYC verification and PEP screening, to reduce the scale of losses and strengthen crypto security.
Compliance is not only crucial for preventing fraud but also for attracting institutional capital to the crypto industry. Demchuk believes that compliance tools and standardized practices can enhance due diligence processes for cryptocurrency protocols and firms. As sovereign entities explore digital assets and institutional products enter the market, integrating compliance into operations will be vital to maintain long-term credibility and attract investment.
In conclusion, as Bitcoin’s price remains volatile and security risks continue to plague the industry, the need for robust compliance infrastructure becomes increasingly evident. AMLBot’s CEO stresses the importance of analytics, responsible use of compliance tools, and proactive risk controls to reduce incidents of crypto crimes and attract institutional capital. Without proper measures in place, the industry’s goal of reaching a $5 trillion market cap may remain elusive.
