FATF | Crypto

The international watchdog says P2P stablecoin transfers via self-custody wallets can bypass AML checks and urges countries to assess risks and apply proportionate safeguards. Peer-to-peer transfers made through self-custody crypto wallets are a key weak point in the stablecoin ecosystem because they can take place without a regulated intermediary, the Financial Action Task Force (FATF) said in a new report urging countries to tighten oversight as stablecoins spread into payments and cross-border transfers. In its report on stablecoins, unhosted wallets and P2P transactions, the global anti-money laundering watchdog said transactions conducted directly between users through unhosted wallets can occur without regulated intermediaries such as exchanges or custodians. The FATF said this structure can create gaps in Anti-Money Laundering (AML) oversight because the transactions occur outside the attention of entities required to monitor activity and report suspicious transfers. The report highlighted growing regu...

Vietnam is leveraging crypto regulation to meet FATF standards, combat digital asset fraud and rebuild its international financial reputation. On June 14, 2025, Vietnam’s National Assembly approved the Law on Digital Technology Industry, effective Jan. 1, 2026. Vietnam’s crypto regulation is part of a broader effort to meet FATF standards after being gray-listed in 2023 due to AML/CFT deficiencies. The law distinguishes between crypto assets (e.g., Bitcoin, Ether) and virtual assets (non-financial digital items), excluding CBDCs and securities. Read more

The FATF is shaping global crypto rules from behind the scenes, with stablecoins and DeFi next in line for scrutiny. Cryptocurrency regulations are increasingly aligning with global standards; 73% of eligible jurisdictions have now passed laws to implement the Financial Action Task Force’s (FATF) Travel Rule. The Travel Rule mandates crypto service providers to collect and share users’ transaction data, similar to traditional finance requirements. On June 26, the FATF released its annual report that outlines how recent regulatory moves by jurisdictions are converging with its global Anti-Money Laundering (AML) framework. This is a direct result of a years-long campaign by the FATF to bring cryptocurrencies in line with traditional AML and Counter-Terrorist Financing (CFT) standards. Read more

Applying advanced tools for tracking illicit stablecoin transactions is necessary; still, it is not enough to mitigate the risks of mass adoption. A recent warning from the Financial Action Task Force (FATF) about the rise of stablecoin-related crimes does not pose a threat to the cryptocurrency industry, according to executives at blockchain intelligence firms. The FATF’s call to address rising illicit stablecoin activity reflects a need for close monitoring and analysis rather than an effort to curb their growth, according to executives at Chainalysis and Asset Reality. The global financial crime watchdog sounded the alarm on stablecoins Thursday, asking regulators to focus on mitigating the risks of their potential mass adoption. Read more

The Financial Action Task Force (FATF) said in a report released this week that global efforts to regulate virtual assets and service providers have improved but remain incomplete, with illicit use of stablecoins accelerating sharply in 2025. The intergovernmental watchdog’s sixth targeted update on the implementation of its standards found that although 73% of jurisdictions […] The post FATF sounds alarm over rising stablecoin misuse as global crypto rules lag appeared first on CryptoSlate.

Mass adoption of stablecoins will amplify illicit finance risks, particularly when it is handled unevenly across difference jurisdictions, the FATF said