Crypto AML Solutions Market to Reach $1 Billion by 2025: What’s Driving it?
Money laundering has been one of the most plaguing issues in the crypto industry for over a decade now. In 2023 alone, a staggering $22.2 billion was laundered across the globe through cryptocurrencies. These funds are constantly funneled into illegal activities like drug trade, human trafficking, weapons trade, and more. This is a key reason why regulators around the globe heavily scrutinize crypto.
This persistent threat is also driving the global market for crypto Anti-Money Laundering (AML) compliance solutions. As of 2023, the market was valued at approximately $686.89 million and is projected to exceed $1 billion by 2025, with a compound annual growth rate (CAGR) of around 17.6% from 2024 to 2031, according to Verified Market Research. This growth is fueled by the rising need for comprehensive compliance frameworks in response to stricter regulatory requirements and the proliferation of decentralized finance platforms, which present new challenges for traditional AML methods.
Market Drivers and Forecast for Crypto AML Compliance Solutions
The global crypto AML compliance solutions market size came to $686 million in 2023, and is estimated to reach one billion by 2025. It’s projected to grow even further to reach $2.49 billion by 2031, according to the latest VMR report. The market is expected to grow at a CAGR of 17.6% from 2024 to 2031.
This growth is fueled by several trends. First of all, governments and financial authorities worldwide are tightening cryptocurrency regulations to combat money laundering and other illicit activities (like FATF does, and the recent MiCA regulation is a great example as well).
As a result, more crypto projects and businesses are looking to adopt AML solutions to comply with this
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