$2.4B in Crypto Stolen This Year: FATF Demands Tougher Global Crypto Rules

The Financial Action Task Force (FATF) has called for stronger global measures to combat illicit finance risks in VIRTUAL assets. In its updated guidelines released on June 26, the Paris-based watchdog emphasized the urgent need for jurisdictions to implement anti-money laundering (AML) and counter-terrorist financing (CFT) standards. Despite progress since 2024, crypto scams continue to surge, exposing gaps in regulatory frameworks.

FATF's sixth targeted update highlights the critical role of licensing and registration for virtual asset service providers (VASPs). Offshore VASPs remain a persistent challenge, with many jurisdictions struggling to mitigate associated risks. The agency also released a report on Travel Rule Supervision, aiming to enhance transparency in cross-border transactions. Ninety-nine jurisdictions are now either enforcing or adopting the travel rule.

"To assist global implementation of the Travel Rule, the FATF has published Best Practices on Travel Rule Supervision," the agency stated. The report outlines exemplary practices for jurisdictions developing supervisory frameworks.