"While transaction data on the blockchain is publicly accessible, bad actors complicate AML tracking by routing their transactions through intermediary services, enhancing funds movement complexity and making wallet attribution with real sanctioned individuals complex," states Ms. Koubien.Rising demand for new solutions for the regulatory technology landscapeThe changing crypto regulatory environment influences the growing demand for regtech companies - KPMGs Pulse showed that such companies received $18.6 billion in 2022. "New compliance solutions will respond to changing global crypto regulationsWith the growing concern about crypto-related AML practices, the decentralized nature of DeFi poses a challenge to regulatory coordination between countries. "The lack of global consensus hinders current AML crypto implementation, yet regtech companies can help develop solutions applicable in the upcoming regulatory environment that will prevent sanctioned entities from entering the protocols," emphasized the CEO of Micapass. "Having the KYC screening process transferred to the client side, we can ensure that users receive digital proof of being good actors keeping their private data off-chain," explains Ms. Koubien.The future of AML practices in cryptocurrencies rests on the compliance tools development to provide more legitimacy to the unregulated crypto market. It provides an advanced AML wallet screening and continuous KYC/AML monitoring designed for DeFi protocols, enabling the identification of bad actors, helping to prevent potential sanctions, and ensuring regulatory compliance.