<h1>Data privacy in AI-powered crypto wallets requires federated learning and adaptive security to reconcile user autonomy with regulatory compliance.</h1> AI-powered crypto wallets convert storage into adaptive financial assistants by using machine learning, behavioural analytics and multi-layered authentication to provide smart transaction recommendations, gas optimisation, fraud alerts, automated rebalancing and cross-chain portfolio tracking. Security shifts to continuous, behaviour-based intrusion detection and automated lockdowns. The text highlights data privacy and decentralization concerns, endorses decentralized AI models and federated learning to protect user data, and identifies self-sovereign identity and regulatory scrutiny as central compliance considerations for white-label and multi-chain wallet offerings.