{"id":75652,"date":"2026-07-20T10:47:08","date_gmt":"2026-07-20T10:47:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/fatf-warns-incomplete-crypto-regulations-are-fueling-illicit-finance\/"},"modified":"2026-07-20T10:47:08","modified_gmt":"2026-07-20T10:47:08","slug":"fatf-warns-incomplete-crypto-regulations-are-fueling-illicit-finance","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/fatf-warns-incomplete-crypto-regulations-are-fueling-illicit-finance\/","title":{"rendered":"FATF Warns Incomplete Crypto Regulations Are Fueling Illicit Finance"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">FATF\u2019s updated report noted 83% of surveyed jurisdictions advanced crypto regulations and the Travel Rule.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The task force urged stronger oversight of offshore virtual asset providers to close illicit regulatory gaps.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">FATF warned criminals exploit weak links, citing a new illicit stablecoin designed to resist asset freezing.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Financial Action Task Force Calls for Increased Oversight on Digital Assets<\/h2>\n<p>The Financial Action Task Force (FATF) has issued its 7th Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers. This report describes the state of digital asset regulation and the remaining weak points in the oversight of criminal activity.<\/p>\n<p>While the <a href=\"https:\/\/www.fatf-gafi.org\/content\/dam\/fatf-gafi\/reports\/7th-targeted-update-on-implementation-fatf-standards-vas-vasps-2026.pdf.coredownload.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">report<\/a> acknowledges that <span>crypto<\/span> regulations and the implementation of FATF Recommendation 15, including the Travel Rule, have advanced in 83% of surveyed jurisdictions, 11 jurisdictions are still working on this.<\/p>\n<p>Recommendation 15 calls for the regulation of Virtual Asset Service Providers (VASPs) and the monitoring of existing Anti-Money Laundering \/ Countering the Financing of Terrorism (AML\/CFT) risks.<\/p>\n<p>On Thursday, the FATF called for further work on regulation, licensing, and registration of VASPs to address the remaining gaps that are leveraged by threat actors for illicit purposes.<\/p>\n<p>Dealing with offshore VASPs, institutions that are registered in jurisdictions with <a href=\"https:\/\/news.bitcoin.com\/fatf-urges-india-to-strengthen-virtual-asset-regulation\/\">weak<\/a> or underdeveloped regulations and can offer their services in other markets, is mentioned as a challenge for risk mitigation in some jurisdictions.<\/p>\n<p>The misuse of <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> is also a relevant factor for the FATF, which registered a case of the issuance of a <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> by a Cambodia-based money laundering <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-bitcoin-node\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">node<\/a> that was marketed as immune to asset freezing, a feature common to all regulated centralized <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a>.<\/p>\n<p>FATF President Giles Thomson highlighted that the implementation of FATF standards can no longer be delayed, as <strong>\u201ccriminal networks continue to abuse virtual assets for illicit purposes and exploit their borderless nature to commit fraud and scams, evade sanctions and launder the proceeds of crime.\u201d<\/strong><\/p>\n<p><strong>\u201cGovernments and the private sector must work together to strengthen preventive measures and close regulatory gaps, bolster cross-border co-operation and deny criminals the opportunity to exploit weak links in the global system,\u201d<\/strong> he <a href=\"https:\/\/www.fatf-gafi.org\/en\/news\/targeted-updated-va-vasps-2026.html\" target=\"_blank\" rel=\"noopener noreferrer\">concluded<\/a>.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/closing-the-loopholes-fatf-warns-incomplete-crypto-regulations-are-fueling-illicit-finance\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways FATF\u2019s updated report noted 83% of surveyed jurisdictions advanced crypto regulations and the Travel Rule. The task force urged stronger oversight of offshore virtual asset providers to close illicit regulatory gaps. FATF warned criminals exploit weak links, citing a new illicit stablecoin designed to resist asset [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":75653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75652"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75652"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75652\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75653"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}