Global Crypto Rules Remain Weakly Enforced: FATF Warns
The Financial Action Task Force (FATF) has warned that global crypto rules remain weakly enforced, despite growing adoption of anti-money-laundering regulations.
In its seventh targeted update on virtual asset regulation, FATF found that while 83% of surveyed jurisdictions have adopted legislation implementing the Travel Rule, effective supervision remains a challenge. The rule requires service providers to collect and transmit information about the originator and beneficiary in qualifying virtual asset transfers.
However, many jurisdictions struggle to identify virtual asset service providers, enforce licensing or registration requirements, and take action against non-compliant firms. Offshore service providers remain a concern as they can operate across borders while avoiding effective supervision.