Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent calls by the Financial Action Task Force (FATF) to increase crypto regulation on a global level.
Nations Need to Increase Crypto Enforcement - Global Watchdog
The FATF have warned that the rise in stablcoin use by bad actors such as North Korea-linked hackers, terror financiers and drug traffickers is proving to be a growing risk which requires stronger global regulations. The FATF are a global financial watchdog and on Thursday, June 26, the Paris based watchdog noted that while progress has been made since 2024 in terms of regulating virtual assets, there are still many jurisdictions which are lagging when it comes to combatting the risks. They have warned that gaps in regulation have the potential for global repercussions.
In a report released on Thursday from Paris, the FATF noted how progress has been made in terms of implementing anti-money laundering and counter-terrorism financing frameworks for virtual assets and related service providers. They continued that many critical challenges remain which includes issues around licensing, offshore oversight, and identifying entities involved in virtual asset services.
The report focused on Recommendation 15, which was expanded in 2019 to cover crypto markets. It notes that 99 jurisdictions have either enacted or are preparing legislation aligned with the “Travel Rule,” a key mechanism to ensure transparency in cross-border crypto transfers. The FATF have also released a new guide which outlines best practices for supervising compliance with the rule.
By April of 2025 there were only 40 of 138 jurisdictions which were considered 'largely compliant' with the FATF's crypto standards, although this is an increase from the 32 the previous year. The FATF stated:
"With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences."
It is believe that illicit crypto wallet addresses could have received up to $51 billion in 2024 according to blockchain analytics firm Chainalysis. In 2025 North Korea managed to execute the largest virtual asset theft in history according to the FATF, which involved stealing $1.46 billion from the exchange platform ByBit. So far about 3.8% of those stolen funds have been recovered and this highlights the serious gaps in international asset tracing and recovery efforts.
Have a great day.
Peace. CryptoGod-1.
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