Regulatory Pulse
The global regulatory climate has entered a new phase. In the lead-up to mid-2025, key financial authorities escalated anti-money laundering (AML) efforts, shifting from advisory to enforcement.
- The Financial Action Task Force (FATF) released its 2025 update, urging jurisdictions to fully implement the Travel Rule and target non-compliant virtual asset service providers (VASPs).
- Singapore’s MAS raises the bar with new AML/CFT requirements, signaling a more hands-on approach to crypto oversight.
- The regulatory climate is shifting fast – from suggestions to strict enforcement.
- Expectations now include enhanced due diligence, source of funds scrutiny, and robust monitoring across borders.
- Global crypto players can’t afford to wait, staying ahead means acting now.
Compliance Pressure Peaked – Were You Ready?
As digital asset adoption continues to grow, global regulators are intensifying anti-money laundering (AML) oversight to address longstanding gaps in digital asset compliance. Two pivotal developments drove this enforcement wave:
As crypto markets expand, global regulators are shifting from guidance to enforcement, and the margin for non-compliance is closing fast. Two recent developments are driving this shift:
FATF’s 2025 Crypto AML Update
Released on June 26, 2025, FATF’s sixth targeted update evaluated how well jurisdictions complied with Recommendation 15 and its 2019 Interpretive Note covering virtual assets and VASPs.
Key takeaways:
- Widespread Travel Rule Adoption: 99 jurisdictions had enacted or were in the process of enacting laws mandating sender/recipient data sharing for cross-border crypto transfers – covering ~98% of global VASP activity.
- Patchy Enforcement: Despite legislative progress, only 40% of jurisdictions actively supervised or enforced compliance – leaving major AML gaps.
- Best Practices Released: FATF published new Travel Rule Supervision Guidelines, equipping regulators to ramp up oversight. It also announced plans to issue detailed reports on stablecoins, DeFi, and offshore VASPs through mid-2026.
For compliance leaders, the message is clear: enforcement has begun, and the window to prepare is closing.
MAS Compliance Deadline Passed: What’s Next?
Under Singapore’s Financial Services and Markets (FSM) Act, all crypto firms serving the Singaporean market were required to obtain a DTSP license by June 30, 2025.
Core obligations include:
- Robust AML/CFT protocols: Transaction monitoring, customer due diligence (CDD), and suspicious transaction reporting (STR).
- Daily reconciliation: Segregation of client assets in statutory trusts, with daily oversight.
- Annual audits & disclosures: Required for all licensed DTSPs.
- Heightened risk classification: MAS designated VASPs as “medium-high risk,” triggering stricter compliance expectations.
Non-compliance carries serious consequences, including fines up to SGD 250,000 or imprisonment of up to three years. MAS made it clear: operational discipline and regulatory rigor were non-negotiable.
This mandate is a clear message: crypto compliance in Singapore demands uncompromising rigor and operational discipline.
Lukka Blockchain Analytics: AML Compliance Made Actionable
Navigating FATF’s and MAS’s evolving AML mandates demands full visibility into crypto transaction flows, counterparties, and risk exposure, not just policies on paper. Well-structured and clearly documented policies are an essential part of the compliance process, but meaningful oversight also requires real-time insight into transactions, counterparties, and risk signals. Lukka Blockchain Analytics delivers an enterprise-grade, all-in-one platform designed to meet all of these exact needs.
Core Capabilities
Real-Time Transaction & Wallet Monitoring
- Monitor flows across 100+ blockchains and 1.8M+ assets
- Flag anomalies, detect patterns, and identify counterparties
AML Risk Alerts & Reports
- 380+ risk indicators
- Alerts on money laundering, terrorist financing, and sanctioned entities – so you never miss a red flag.
Entity Due Diligence
- In-depth profiles on exchanges, VASPs, counterparties
- Jurisdictional risk, license status, KYC/AML policy violation
Omni Transaction Tracing
- Trace funds up to 400 hops across multiple chains
- Reveal true origins and destinations of funds
Sanctions & DeFi Risk Screening
- OFAC, HMT, EU sanctions list coverage
- DeFi pool proximity analysis to high-risk wallets
Audit Trails and Robust Documentation
With Lukka, compliance teams gain actionable insights – empowering smarter decisions, faster responses, and stronger defense against regulatory risk.
- Asset segregation documentation: Transparent audit trails with wallet-level oversight
- Audit-Ready Evidence: Clear, auditable trails at the wallet level for seamless documentation and control.
Why Lukka Blockchain Analytics is the Right Fit
1. FATF Travel Rule compliance: Full transaction tracing with counterparty mapping
2. MAS transaction monitoring: Real-time alerts and wallet behavior analysis
3. Suspicious Transaction Reporting (STR) and audit reporting: Dynamic reports aligned with regulatory requirements
4. Sanctions enforcement: Automated checks across global sanctions databases
- FATF Travel Rule Ready: Complete transaction tracing with detailed counterparty mapping to ensure full transparency.
- MAS Transaction/Wallet Monitoring: Real-time alerts combined with sophisticated wallet behavior analysis to catch risks early.
- STR & Audit Reporting: Dynamic, customizable reports designed to meet evolving regulatory standards.
- Sanctions Enforcement: Automated screening across global sanctions lists, minimizing exposure to sanctioned entities.
Lukka delivers the precision and scalability compliance teams need to confidently navigate today’s toughest crypto regulations.
What Crypto Firms Should Do Now
- Conduct a compliance gap assessment against FATF and MAS requirements.
- Leverage Lukka Blockchain Analytics to gain continuous transaction monitoring, receive actionable risk insights, and trace asset flows in real time.
- Prepare for MAS audits by using Lukka’s audit-ready documentation, entity screening, and wallet monitoring capabilities.
As regulatory demands grow sharper and more complex, reactive compliance won’t cut it anymore. Lukka equips crypto businesses with the transparency and control needed to stay ahead of enforcement, all while leading the market with confidence.
Stay Ahead of Enforcement. Stay Compliant.
Is your compliance framework ready for what’s next?
Explore how Lukka Blockchain Analytics helps you detect risk, monitor transactions, and stay in sync with evolving AML standards while gaining real-time blockchain visibility, actionable AML insights, and audit-ready reporting all in one SaaS platform.
Don’t wait for regulators to catch up to you. Take control now.
Contact us today to schedule a personalized demo and see how Lukka can transform your compliance program.
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