**Challenges Ahead: Blockchain Analytics in 2025**

As we approach a new year, blockchain analytics face numerous challenges, including rising costs and attribution trust concerns. Despite the promising future of blockchain, with the potential for seamless cross-border payments and the growth of tokenized real-world assets, regulatory compliance remains a pressing issue.

**The Year of DeFi Compliance**

DeFi is already under regulatory scrutiny, with prominent cases such as Uniswap Labs and Lido DAO facing penalties and liability. As the number of DeFi users surpasses 131 million, it’s essential for DeFi projects to prioritize compliance. Criminals are exploiting weaknesses in DeFi platforms, and applying FATF standards to DeFi is challenging due to its decentralized nature.

**Increasing Compliance Costs**

With more regulations, compliance costs are rising. The alternative is risking hefty fines, damaged reputations, and business interruptions. Two main reasons contribute to the cost growth:

  • The surge in cybercrime, with crypto investment fraud losses increasing by 53% in 2023.
  • The growing workload on compliance officers, who must ensure adherence to new regulations.

These factors strain resources, increase the risk of oversight errors, and lead to missed red flags, incomplete investigations, or incorrect risk assessments.

**AI Introduction**

Introducing AI to automate simple tasks can help reduce costs. AI can handle tasks such as sending notifications, distributing alerts, and answering FAQs. However, AI is not yet ready to handle tasks that require human judgment, such as risk scoring. A cautious approach to integrating AI for routine tasks is recommended.

**Attribution Trust**

Attribution trust is a significant challenge, as it relies on verified and reliable data. Two types of data can be confused:

  • Verified data that can be used in court.
  • Unverified data from less trustworthy sources.

Only data with 100% proof can be relied upon for attribution. Without solid proof, attribution can be dismissed or challenged in court, damaging the reputation of the crypto industry.

**Privacy of Operations**

Keeping compliance activities private is crucial to prevent bad actors from exploiting information. Using private servers ensures that sensitive data stays under strict control, preventing leaks or unauthorized access.

As we move forward in 2025, it’s essential to address these challenges and prioritize compliance, attribution trust, and privacy of operations. Stay up-to-date with the latest news and insights on blockchain analytics and cryptocurrency regulations on Global Crypto News.

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