New York Manhattan area prosecutors recently commented on compliance issues in the crypto industry: engaging in crypto-related activities without a license should be classified as a criminal offense. The logic behind this stance is quite clear—current regulations still have loopholes in anti-money laundering and organized crime enforcement frameworks for crypto assets.

Specifically, the authorities have put forward several core demands: first, all crypto businesses must obtain legitimate licenses to operate; second, enforce KYC (Know Your Customer) procedures to ensure traceability of identities. These requirements may seem routine, but they exert real pressure on the gray areas that have long bypassed regulation.

More notably, there is mention of channels such as crypto ATMs. These self-service devices claim to offer convenience to users, but precisely because of their relatively covert operation, they have become breeding grounds for "anonymous currency exchange"—criminal funds are rapidly converted and circulated through these channels. From an anti-money laundering perspective, this is indeed a high-risk vulnerability.

This statement reflects the deep concerns of traditional financial regulators regarding the crypto ecosystem: how to retain space for technological innovation while closing loopholes that could be exploited for illegal activities. For industry participants, this is also a signal—rising compliance costs are inevitable, but they also mark the dividing line between the legitimate sector and the gray area.