The crypto industry is facing a growing challenge from scams, which surged in 2024 and are expected to worsen in 2025. Cryptocurrency scams, including traditional frauds like Ponzi and pump-and-dump schemes, are harming consumer confidence and being exploited to launder money from traditional finance (TradFi). With nearly 90% of crypto registration applications in the UK being problematic, the need for robust compliance with evolving Anti-Money Laundering (AML) regulations is critical. To effectively combat crypto-related fraud, the industry must adopt cross-sector data sharing, as seen in TradFi, to enhance visibility across the crypto and fiat currency exchanges. The UK regulatory landscape, aided by recent legal changes and the Information Commissioner's stance on data protection, provides an opportunity for the crypto sector to participate in established fraud prevention ecosystems. This collaboration could significantly strengthen fraud defenses, making a compelling case for comprehensive data sharing across the crypto landscape.

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