Crypto launderers are turning away from centralized exchanges: Chainalysis

Overview

Recent findings from Chainalysis reveal a significant shift in the landscape of cryptocurrency laundering. The on-chain money laundering ecosystem processed a staggering amount of funds in 2025, highlighting the evolving tactics used by illicit actors. Notably, Chinese-language networks have emerged as the dominant force in this illicit activity.

The Shift in Money Laundering Tactics

According to Chainalysis, the on-chain money laundering ecosystem has seen a dramatic increase in the volume of funds processed, amounting to $82 billion in 2025. This figure underscores the growing sophistication and scale of money laundering operations within the cryptocurrency space.

A key aspect of this trend is the notable shift away from centralized exchanges. Historically, centralized exchanges have been a common target for money laundering activities due to their high liquidity and ease of access. However, the current trend indicates that crypto launderers are increasingly favoring decentralized platforms and networks, particularly those that operate in Chinese languages.

The dominance of Chinese-language networks suggests that these platforms may offer unique advantages or methods that appeal to those engaged in illicit activities. This trend raises concerns about the effectiveness of regulatory measures and the ability to track and combat money laundering in the cryptocurrency ecosystem.

The implications of this shift are significant for law enforcement and regulatory agencies. As launderers adapt to avoid detection, it becomes increasingly challenging to monitor and mitigate the risks associated with cryptocurrency transactions. Furthermore, the rise of decentralized platforms complicates the landscape for compliance efforts, as these networks often operate without the oversight typically associated with centralized exchanges.

From author

The findings from Chainalysis highlight an urgent need for stakeholders in the cryptocurrency industry to reassess their strategies for combating money laundering. As the methods employed by illicit actors evolve, so too must the tools and technologies used by regulators and law enforcement. The increasing reliance on decentralized networks for money laundering activities indicates a critical juncture for the industry, one that requires proactive measures and innovative solutions to address the challenges posed by these developments.

Impact on the crypto market

• The reported growth in on-chain money laundering activities raises red flags for regulators, potentially leading to stricter compliance requirements for all cryptocurrency platforms.
• Increased scrutiny on decentralized networks may result in heightened regulatory pressure, which could impact their adoption and operation.
• The dominance of Chinese-language networks in laundering activities may lead to a geographical focus in enforcement efforts, particularly in regions where these platforms are prevalent.
• The shift away from centralized exchanges could lead to changes in trading volumes and liquidity on these platforms, as illicit actors seek safer avenues for laundering.
• The findings may prompt the development of advanced tracking technologies and tools aimed at enhancing the ability to monitor and mitigate money laundering risks in the crypto space.