Cryptocurrency adoption is growing at record speed. More companies are accepting digital assets for payments, treasury management, and international transfers. However, this growth comes with increasing compliance risks. In 2024 alone, Tether and Circle froze over $1.3 billion in stablecoins, and 5% of all stablecoin transactions — worth more than $649 billion — were linked to suspicious addresses.
Even law-abiding businesses can face frozen funds, exchange account closures, and serious reputational damage if they unknowingly accept “dirty” crypto connected to fraud, sanctioned wallets, or illicit activities. The consequences? Lost funds, blocked operations, or even legal investigations.
In this article, the BitHide team shares practical steps your company can take to stay compliant, protect its crypto assets, and keep operations running smoothly without exposing your business to unnecessary risks.
Why AML Compliance Matters in Crypto
AML (Anti-Money Laundering) compliance isn’t just a regulatory checkbox. In crypto, it protects your company from:
- Receiving tainted funds that could freeze your operational balances.
- Becoming a target for exchanges or issuers enforcing sanctions or regulatory demands.
- Damaging your reputation with clients, partners, and regulators.
- Unexpected legal exposure, especially in high-risk sectors like gaming, DeFi, or cross-border payments.
As blockchain analytics become more advanced, funds linked to illicit activities are easier to trace. However, without built-in checks, your business might not know it is receiving such assets until it is too late. Investigations often move fast, leaving little room to prove your innocence if processes aren’t documented in advance.
How to Protect Business Assets and Stay Compliant
While checking all incoming transactions and segmenting incoming funds are crucial first steps, they are far from the only measures businesses should take for responsible crypto management. A full compliance strategy requires layered tools, policies, and team training to stay protected.
Check All Incoming Transactions
Never assume that a transaction is safe just because it involves stablecoins like USDT or USDC. While these assets are widely used in crypto payments, they are also heavily targeted for money laundering. Recent data shows that 1 in every 20 stablecoin transfers is linked to high-risk or suspicious addresses.
Always screen incoming payments before adding them to your operational balances. This proactive step can save your company from frozen funds and compliance investigations down the line.
Example
In 2024, a legitimate business received ETH from an Asian client. The funds had previously touched Tornado Cash, a sanctioned mixer. Although the company had no connection to the mixer, Gemini froze over $100,000 in their account, blocking operations for months. Only part of the funds were returned after extensive communication.
Use AML Tools at Every Stage
It’s not enough to check funds only after they arrive. Implement real-time AML screening for both incoming crypto and addresses you plan to interact with in the future.
Leading compliance teams analyse:
- The origin of funds.
- The transaction history of wallet addresses.
- Associated risks, including links to mixers, darknet markets, or sanctioned entities.
Screening at every stage helps you spot potential threats before they reach your treasury. Additionally, ensure your compliance tools integrate alerts that notify the team instantly when risk thresholds are breached.
Segment Incoming Funds
Don’t mix “clean” and risky assets. Keeping them in the same wallet or balance can lead to the entire wallet being flagged.
Best Practice
Set up separate wallets or addresses for:
- High-risk funds, pending additional verification.
- Clean operational balances, used for daily transactions and payouts.
This structure simplifies accounting, improves compliance transparency, and reduces exposure if suspicious assets are identified later. Segmentation also helps during audits and regulatory inspections, showing your proactive approach to risk management.
Establish Internal Policies and Protocols
Compliance isn’t just about tools — it’s about people and processes. Create clear internal policies that define:
- Transaction limits per client or payment.
- Automated alerts for large or unusual transfers.
- Response protocols when suspicious funds are received (e.g. freezing funds, filing reports, or notifying partners).
Regular training for your team is also critical. Most AML failures come not from bad intent, but from employees unaware of proper procedures. Consider quarterly refresher sessions to keep your team updated on the latest compliance threats and requirements.
Choose Transparent and Customizable Solutions
Not all crypto solutions support compliance equally. Choose wallets and payment gateways that integrate:
- Automated AML checks on every incoming transaction.
- Risk-based fund segmentation, so risky funds are separated instantly.
- Custom compliance rules, allowing your company to set thresholds and alerts matching your risk appetite and jurisdiction.
For example, BitHide’s business crypto wallet was built specifically for companies managing large volumes of payments. It streamlines AML crypto procedures by automating screening, organising funds by risk level, and enabling businesses to customise their internal compliance flows without compromising privacy or operational speed.
Additional Tips for Strengthening Compliance
Conduct Regular Audits
Schedule internal audits to review your AML procedures and ensure they align with the latest regulatory requirements and blockchain analytics capabilities. Use these audits to identify weak points in processes or documentation.
Monitor Regulatory Changes
Crypto regulations are evolving rapidly worldwide. Stay updated on new rules in your operating regions to adjust policies proactively.
Combine On-Chain and Off-Chain Checks
While on-chain data shows transaction histories, off-chain intelligence can reveal project reputations, sanctions lists, and external risk indicators, giving a full compliance view.
Consider Insurance and Legal Reviews
Discuss coverage options with your legal team or insurance partners to protect against operational interruptions or fines caused by accidental AML breaches. Insurance tailored for digital asset businesses is becoming more accessible and can strengthen your compliance strategy.
Conclusion
Staying compliant in the crypto industry is no longer optional – it’s an operational necessity to protect your funds, reputation, and long-term business viability. By:
- Checking incoming transactions,
- Using AML tools at every stage,
- Segmenting funds,
- Setting strong internal policies, and
- Choosing secure, transparent crypto solutions,
… your company can reduce exposure to frozen funds, penalties, or legal action.
Choose a non-custodial crypto wallet that offers built-in AML checks, risk-based fund management, and customisable compliance settings, giving your team full control and peace of mind in your crypto operations.
