Global Watchdog Demands Stronger Crypto Oversight to Combat Illicit Finance

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The Financial Action Task Force (FATF) is urging nations to intensify enforcement of crypto anti-money laundering (AML) rules, cautioning that regulatory gaps pose risks to financial stability.

In a Thursday report, the Paris-based watchdog acknowledged progress since 2024 but identified persistent vulnerabilities—particularly in licensing, offshore supervision, and entity identification.

A key focus was FATF’s Recommendation 15, updated in 2019 to address crypto markets. While 99 jurisdictions are advancing “Travel Rule” compliance—a transparency safeguard for cross-border transfers—the report highlights escalating threats from stablecoins.

Illicit use by North Korean hackers, terror groups, and drug cartels has surged, raising alarms about uncontrolled adoption.