Crypto Industry Enters Regulated Maturity Era Amid Evolving Fraud Strategies

The crypto industry is entering a new era of regulated maturity, according to a recent report by Sumsub. This shift is driven by frameworks such as the CLARITY and GENIUS Acts in the US, which provide clearer guidelines for businesses operating in the space.

Sumsub VP North America Danielle Labarbera notes that these frameworks raise the operational standard expected of businesses, requiring them to demonstrate accurate, consistent, and scalable identity verification, transaction monitoring, and reporting systems.

The report highlights that only 23% of crypto businesses are fully Travel Rule-compliant, with 43% unsure whether they comply with the requirement. Labarbera explains that this is due to the difficulty in operationalizing the rule consistently across jurisdictions and counterparty requirements.

Fraud is also evolving, becoming increasingly sophisticated with AI-enabled operations. These attacks combine deepfakes, synthetic identities, social engineering, and account takeovers, making it harder for businesses to detect threats. Labarbera emphasizes the need for continuous monitoring and behavioral analytics to understand how risk evolves throughout the customer lifecycle.