Chainalysis projects that cryptocurrency money laundering will top $82 billion globally by the end of 2025, a sharp rise from $10 billion in 2020. The firm highlights that this growth is driven by the increasing professionalization of illicit services and by networks operating in Chinese-language channels. The report stresses that these developments change how on-chain crime is organized and traced. Policymakers and industry participants are responding, but criminal techniques are also evolving.
The $82 Billion Cryptocurrency Laundering Forecast
The Chainalysis forecast frames the recent surge as more than a simple increase in volume: it reflects an evolution in how illicit actors move funds. Analysts point to larger liquidity in crypto markets and the emergence of structured laundering services that make moving big sums easier and faster. These services often use multiple blockchains and automated processes to obscure origins, which complicates traditional tracing approaches. As a result, detecting and disrupting large-scale flows has become more technically demanding.
Chinese-Language Networks' Dominance
According to the report, the Chinese-language money laundering network (CMLN) now accounts for approximately 20% of all known illicit cryptocurrency activity. This network is a loose ecosystem of OTC brokers, mixing services, and nested exchanges that operate with significant operational sophistication and language-specific communications. Their reach is amplified by a large user base and regional regulatory complexity, which the report says these groups exploit to run cross-border operations. For context on related shifts in crypto crime volumes, see crypto crime volumes in 2025.
Modern Money Laundering Techniques
Chainalysis describes modern laundering as a multi-stage process that prioritizes breaking the chain of ownership on ledgers and then reintegrating funds. Networks excel at the layering phase, using cross-chain transfers, mixers and automated transaction chains to hide traces of origin. They also coordinate through encrypted, language-specific channels that hinder external monitoring and enforcement. These methods make single-ledger tracing increasingly insufficient without cross-chain tools and pattern analysis.
Global Regulatory Response
In reaction to the trend, regulatory bodies like the Financial Action Task Force (FATF) are pushing for stricter implementation of the "Travel Rule," while jurisdictions tighten AML/KYC requirements for virtual asset service providers. The blockchain analytics industry is developing cross-chain tracking tools, and cooperation between private firms and public agencies is growing. Still, the report notes a persistent gap between criminal innovation and the speed of countermeasures, keeping enforcement efforts on the back foot. For additional context on regional developments in China, see China blockchain startups.
Why this matters
If you run mining equipment in Russia, this trend may affect how easily mined coins can be converted or moved through certain services, because regulators and exchanges are increasing compliance checks. Tighter AML/KYC and Travel Rule enforcement can make on- and off-ramps more demanding, even if your operation is lawful and small. At the same time, larger laundering volumes and sophisticated networks can raise scrutiny toward parts of the ecosystem that interact with exchanges, OTC desks, and custodial services. Staying informed about compliance developments helps avoid disruptions when converting or withdrawing mined funds.
What to do?
- Keep transparent records of mining income and wallet histories to demonstrate legitimate origin when required by exchanges or payment services.
- Use regulated and compliant VASPs for converting or custodial needs, and complete KYC proactively to reduce friction during withdrawals.
- Monitor policy updates on the FATF Travel Rule and local AML requirements so you can adapt operations or service providers in time.
- Separate personal and business wallets, and avoid third-party services that advertise opaque mixing or laundering capabilities.
- Review security practices regularly—exchanges and services under higher scrutiny may also be targets of criminal hacks; see reports on major exchange hacks for related risks.
Expert takeaway
"We are witnessing the industrialization of crypto-based money laundering," explains Dr. Lena Zhou. Her observation in the report underscores that many current operations resemble structured businesses offering laundering-as-a-service, which raises the bar for detection and enforcement. For miners and service providers, the practical implication is clear: compliance and transparent record-keeping reduce operational risk as regulators and industry tools catch up.
FAQ
What is the Chinese-language money laundering network (CMLN)? The CMLN is a loosely connected ecosystem of OTC brokers, mixing services, and money transmitters operating primarily in Chinese and facilitating obfuscation of cryptocurrency origins. Chainalysis identifies it as responsible for roughly 20% of known illicit crypto activity.
Why has crypto money laundering grown since 2020? Growth is linked to increased market liquidity and the professionalization of laundering services that use multiple blockchains and automated layering to move funds. These services operate openly in messaging platforms and across chains, making large-scale laundering more accessible.
What are regulators doing? Regulators and international bodies are enforcing stricter AML/KYC rules and pushing for Travel Rule compliance among VASPs, while analytics firms develop cross-chain tracking tools to identify illicit flows. Cross-border cooperation and formal partnerships between public agencies and private firms are also increasing.
