The Monetary Motion Process Power (FATF) stated in a report launched this week that international efforts to control digital belongings and repair suppliers have improved however stay incomplete, with illicit use of stablecoins accelerating sharply in 2025.
The intergovernmental watchdog’s sixth focused replace on the implementation of its requirements discovered that though 73% of jurisdictions surveyed have handed legal guidelines implementing the so-called Journey Rule for crypto transfers, enforcement stays restricted.
The report famous that out of the 85 international locations with Journey Rule legal guidelines, practically 60% have but to situation compliance findings or directives.
The report additionally highlighted a record-breaking $1.46 billion digital asset theft this 12 months by North Korean actors from the crypto change Bybit.
FATF famous the hackers used social engineering and sophisticated laundering networks involving mixers, OTC merchants, and greater than 125,000 Ethereum wallets. Solely 3.8% of stolen funds have been recovered, highlighting persistent difficulties in tracing and repatriating crypto-linked proceeds of crime.
Total, stablecoins have turn into the dominant automobile for illicit on-chain exercise, pushed by their low price, quick settlement, and broad liquidity.
FATF cited personal sector estimates displaying over $30 trillion in stablecoin quantity throughout the previous 12 months, alongside the expansion of ‘pig butchering’ scams {and professional} rip-off networks using AI-generated chatbots and deepfakes to defraud victims.
Regardless of these dangers, the report discovered that just one jurisdiction is totally compliant with FATF Suggestion 15 on digital asset oversight. In the meantime, 29% of nations have been rated ‘largely compliant,’ whereas about half stay solely partially compliant and 21% should not compliant in any respect.
FATF urged jurisdictions to speed up licensing and registration of digital asset service suppliers, strengthen enforcement towards unregistered entities, and implement measures to observe decentralized finance (DeFi) preparations.
The report additionally famous that round half of the surveyed regulators require DeFi initiatives with identifiable management events to register as VASPs, however enforcement stays uncommon.
Wanting forward, FATF plans focused experiences on stablecoins, offshore VASPs, and DeFi over the following 12 months. The regulatory physique warned that as stablecoins strategy mass adoption, uneven international regulation will heighten illicit finance dangers and hamper coordinated responses.
The following complete replace on Suggestion 15 implementation is due in 2026.
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