As the year wraps up, it’s a good time to look ahead, think about what the future holds, and even make some crypto predictions. Blockchain technology is full of possibilities, from making cross-border payments easier to the rise of tokenized real-world assets and decentralized identity solutions.
But while the future looks bright, the road forward isn’t without its challenges. As we move toward 2025, it’s important to focus not just on blockchain’s potential but also on its obstacles. Lex Fisun, CEO of Global Ledger, reflects on the challenges awaiting blockchain analytics in 2025.
1. 2025 to become a turning point for DeFi compliance
DeFi has already caught the attention of regulators, with key cases setting the tone. Uniswap Labs faced notices and penalties from the SEC and CFTC, while Lido DAO was ruled a general partnership, holding its identifiable participants accountable despite decentralization.
DeFi has become a hotspot for illicit activities like money laundering, exploiting gaps in enforcement and AML/CFT standards. Applying FATF rules to DeFi is tricky due to its lack of KYC, cross-chain protocols, and privacy tools. As 2025 approaches, regulatory compliance in DeFi is becoming increasingly essential.
Decentralized exchanges are used as proxies for mixing. Part of the GL Counterparty report showing sources of funds for Tornado Cash. January 1, 2024 – November 27, 2024
2. We’ll have to tackle rising compliance costs
Compliance is becoming increasingly expensive as regulations tighten. Ignoring these requirements isn’t a viable option—it risks fines, reputational damage, and operational disruptions. Businesses must adapt, and GL is already exploring ways to streamline processes by making operations faster.
GL Entity Explorer screenshot showing that Russian (3) darknet market (2) Hydra is sanctioned (1) and associated with drugs, fraud, stolen data, and other illegal services (4). An all-in-one overview can help save time and compliance costs
Why costs are rising
- Challenges
These include the surge in cybercrime and sanctions evasion, fraudsters learning fast and becoming harder to catch, and growing political instability, which results in rising crypto adoption and complexity in compliance monitoring.
- Increased workload for compliance teams
New regulations mean more work for compliance officers, who must review growing numbers of alerts and ensure adherence to stricter standards. For instance, managing 1,000 alerts a month could require up to 20 officers.
Compliance departments, though essential, don’t generate profit—they incur expenses that are passed on to customers. The resources required for checks can make small transactions financially unviable.
This heavy workload increases the risk of errors, such as missed warnings or incomplete investigations. The stakes are high, as illustrated by Binance’s $4 billion fine for AML violations and its CEO’s prison sentence.
3. AI to take on simple tasks
AI can help reduce compliance costs. It can be assigned routine tasks that don’t require human decision-making. These could be sending notifications to compliance officers, assigning alerts to team members, and even addressing common FAQs.
AI still isn’t capable of managing complex tasks that rely on human judgment, like risk scoring.
GL Score scheme with examples from 0 to 100
For now, the most effective strategy is to use AI selectively for repetitive tasks, allowing teams to focus on more critical work. You can join us in testing AI tools for analytics to see how they can improve efficiency.
4. Attribution trust issue needs to be solved
One of the reasons artificial intelligence isn’t ready for significant compliance tasks is a lack of trust in attribution. This issue arises when two types of data are confused:
- Dependable information that can be used as evidence in court.
- Less credible sources, such as a social media claim about a project being a scam. While useful for raising flags, this cannot justify actions like seizing funds or accusing a customer.
Only fully verified data can be trusted for attribution in compliance.
5. It’s crucial to keep all compliance activities private
Trust in compliance relies not only on data verification but also on maintaining privacy. It’s crucial to keep all compliance activities confidential, ensuring no one knows which transactions are being reviewed until the process is complete.
This confidentiality is critical for businesses, regulators, and law enforcement. It allows investigations to proceed without tipping off bad actors, who might otherwise exploit the information to hide evidence, move illicit funds, or evade detection.
A practical solution is using private servers, as GL does. These servers ensure sensitive data remains secure, preventing leaks or unauthorized access.
To conclude
As we move into 2025, blockchain analytics will face challenges. By focusing on improving compliance, managing costs, using AI for simpler tasks, ensuring reliable data, and protecting privacy, the industry can overcome obstacles and grow stronger. These steps can help meet regulations, build trust, and support progress.