Do crypto exchanges need AML?

As a financial practitioner, I often wonder about the regulatory landscape surrounding cryptocurrency exchanges. One key aspect that intrigues me is the question of whether crypto exchanges truly need Anti-Money Laundering (AML) measures. After all, these digital platforms operate in a decentralized environment, often seen as a haven for illicit financial activities. However, as the crypto industry matures and regulators step up their oversight, it begs the question: Is AML a necessity for crypto exchanges, not just a compliance checkbox? Or are there alternative frameworks that could provide adequate safeguards without impeding on the innovative spirit of these platforms? Exploring this question further could help shape the future of crypto regulation, ensuring both security and growth in this rapidly evolving space.