Catenaa, June 27, 2025– The Financial Action Task Force has urged governments worldwide to urgently tighten enforcement of anti-money laundering rules across the cryptocurrency sector, warning that unchecked regulatory gaps could endanger global financial security.
In a report released Thursday from Paris, the FATF said jurisdictions had made moderate progress in implementing counter-terrorism financing and AML frameworks since 2024. But it flagged major weaknesses in licensing oversight, cross-border compliance, and the identification of crypto service entities, calling for immediate action.
The report focused on Recommendation 15, which since 2019 has applied FATF standards to digital assets. The watchdog praised 99 jurisdictions for enacting or preparing legislation to implement the “Travel Rule,” which mandates identity-sharing on cross-border crypto transfers. It also issued a guide to improve national supervisory practices.
However, FATF warned that stablecoins were increasingly exploited by criminal networks. The group cited growing misuse by North Korean hackers, terrorist financiers and drug traffickers. A recent heist by a North Korea-linked group netted $1.46 billion from ByBit, marking the largest crypto theft ever, with only 3.8% of funds recovered.
The report estimated $51 billion worth of on-chain activity last year was tied to scams or illicit activity. It called for faster global cooperation and stronger enforcement tools, including seizure mechanisms.
The FATF praised the UK’s Operation Destabilise as an example of effective international policing and urged other nations to replicate its success. It said 98% of the global crypto market lies within its Global Network, stressing that full compliance is critical to mitigating systemic risk.
