The post-pandemic era has catalyzed rapid growth in digital finance, with an influx of technologies re-shaping how financial services operate. Key enablers include automation through Artificial Intelligence (AI), cybersecurity innovation, payment modernization, open banking, blockchain and the rise of cryptocurrencies and Decentralized Finance (DeFi). While enhancing accessibility and customer experience remains a priority, institutions are increasingly focused on embedding security and compliance across jurisdictions.
Amid this evolution, two standout levers are re-defining financial services: 1) AI and 2) cryptocurrencies and blockchain.
AI in Financial Services: Unlocking Intelligent Control
AI is already playing a pivotal role in transforming the finance industry. From algorithmic trading and fraud detection to predictive analytics and customer support bots, AI is enabling:
Real-time insights for better decision-making
Automation of customer interactions and service journeys
Generative AI tools like ChatGPT have added new dimensions in learning, search, translation and content generation, enhancing productivity across the ecosystem.
Cryptoassets & Blockchain: Opportunities and Oversight
The global crypto market value has surpassed USD 4 Trillion1 , with major assets leading the way:
Bitcoin remains the dominant cryptocurrency, with Ethereum also performing well.
Stablecoins and DeFi are growing mainstream, with new regulations like the US Stablecoins (GENIUS) Act.
Altcoins, which form as a group of all other notable cryptocurrencies like XRP, BNB and Solana, are also showing positive trends.
The volatility in crypto markets is driven by supply-demand imbalances, market sentiment and user adoption. Despite this, blockchain technology is emerging as a critical infrastructure across industries, with applications that span transparent transactions, identity verification, supply chain traceability and secure data sharing. Innovations such as Proof-of-Stake (PoS) and Zero-Knowledge (ZK) mechanisms are boosting blockchain scalability and energy efficiency.
Regulating Cryptoassets: A Global Imperative
The Financial Action Task Force (FATF), through its Recommendation 15 on ‘New Technologies,’ guides nations on addressing the financial crime risks posed by Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). It mandates:
Country-specific Efforts
Although there are no jurisdiction-specific regulations on cryptoassets, countries like the US and the UK are already working on introducing regulations.
Many other countries are also adopting a similar approach to create regulations on how to govern and regulate cryptoasset and blockchain transactions.
The Current State of Financial Crime Investigations in Cryptoassets
Financial crime programs and controls in the cryptoasset ecosystem are primarily focused on preventing money laundering, terrorist financing, fraud and other illicit activities. While these controls broadly align with traditional financial sector laws and regulations, they must be adapted to address the unique characteristics and emerging risks of digital assets.
Based on our experience, most financial crime / Anti-Money Laundering (AML) for crypto programs are led by public blockchains, VASPs and crypto exchanges. In contrast, private blockchains have shown limited adoption of Know Your Customer (KYC) protocols or transaction monitoring practices. Yet these remain essential for safeguarding product integrity, data protection and platform trust.
The absence of a comprehensive crypto compliance program can make DeFi platforms or blockchain-based products particularly vulnerable to misuse. Their inherent anonymity, combined with cross-border operability, increases the likelihood of funds flowing through high-risk or sanctioned jurisdictions, raising serious concerns around financial crime and regulatory arbitrage.
To address these risks and ensure consistency across different crypto products and services, global regulatory bodies continue to issue guidance for VAs and VASPs. These guidelines define where and how AML checks should be applied, and to what extent, to protect users and preserve market integrity.
Enabling Future-ready Crypto Compliance Through the Right Partnerships
Establishing effective financial crime is a business imperative for building long-term trust, platform integrity and cross-border operability.
Given the evolving risk landscape, organizations should seek partners that bring a blend of domain excellence, operational depth and forward-looking capabilities. In today’s dynamic environment, the right partner must go beyond static controls; they must enable adaptive, AI-augmented and human-led models that can evolve with both regulatory expectations and criminal sophistication. As financial services continue to embrace the opportunities of digital assets, such partnerships will be central to co-creating safer, smarter and more resilient ecosystems.
Charting a Safer Future for Digital Finance
As digital finance continues to evolve at pace, the intersection of innovation, regulation and risk demands a deliberate, well-architected response from all stakeholders in the crypto ecosystem. While technologies like AI and blockchain unlock immense value, they also introduce new complexities in detecting and mitigating financial crime. Regulations are beginning to catch up, but compliance readiness cannot be reactive. Institutions must proactively build robust, scalable AML frameworks that are adaptable to emerging threats and regulatory expectations.
Explore how WNS can help you strengthen crypto compliance, navigate evolving regulations and build resilient, future-ready financial crime programs.
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References
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Crypto Sector Breaches $4 Trillion in Market Value | Reuters