AML in DeFi: How Anti-Money Laundering Rules Are Shaping Decentralized Finance

When you trade crypto on a decentralized exchange, you might think you're invisible—but AML in DeFi, anti-money laundering rules applied to decentralized finance platforms. Also known as crypto compliance, it's the quiet force behind why even unregulated DEXs now track transactions and flag odd behavior. This isn't about big banks or government crackdowns—it's about survival. If a DeFi platform can't prove it's not being used for laundering drug money, terrorist funding, or stolen crypto, it gets delisted, frozen, or shut down by global regulators.

suspicious activity report, a formal alert filed by exchanges when they detect unusual crypto flows. Also known as crypto SAR, it's the trigger that starts investigations by FinCEN and FATF. You don’t need to be a bank to file one. Even small DEXs like VoltSwap or LocalTrade now have to monitor wallet activity—if someone sends $500,000 in ETH from a known mixers to a new wallet, that’s a red flag. And if they ignore it? They become targets. The same goes for KYC crypto exchanges, platforms that require users to verify their identity before trading. Also known as crypto identity verification, they’re no longer just for centralized giants like Coinbase—many DeFi protocols now tie wallet access to verified identities to stay legal. It’s not about trust—it’s about avoiding jail time and fines that can hit millions.

What you’re seeing in the posts below isn’t random. It’s a pattern. Projects like Metahero and AdEx Network got attention because they ran airdrops—easy targets for money launderers. Others, like LocalTrade and Decoin, vanished because they refused to implement basic AML checks. Meanwhile, countries like Vietnam and Turkey are forcing exchanges to hold $379 million in capital just to operate, and that’s not a typo—it’s a barrier built to stop shell companies and anonymous trading rings. Even privacy coins like Monero are being pulled from exchanges because they can’t be traced. AML in DeFi isn’t slowing innovation—it’s cleaning it up. The ones who survive aren’t the flashiest—they’re the ones who play by the rules, even if those rules were made by people who don’t understand blockchain.

Below, you’ll find real reviews, deep dives, and scam warnings—all tied to how AML rules changed the game. Some projects got caught. Others adapted. And a few? They never stood a chance.