Fatf warns about the increase in cryptographic crime, urges nations to strengthen regulation

The financial action task (FATF) group, the global standard setter for the financial crimes policy, has urged governments around the world to increase efforts in the regulation of cryptographic assets amid the growing concerns about their use in illicit financial activities.

In a report published on Thursday, the Guardian dog based in Paris warned that insufficient regulatory action in the cryptographic sector could expose the global financial system to serious risks. Although Fatf pointed out some progress in the implementation of its virtual asset guidelines, compliance remains limited. As of April 2025, only 40 of 138 jurisdictions evaluated were “largely compatible with Fatf cryptography regulations, an improvement of 32 in 2024, but still far from being sufficient.

“With virtual assets inherently without borders, regulatory failures in a jurisdiction can have global consequences.” Glasses He said in his statement.

Crypto Crime continues to increase

According to data from the Blockchain analysis analysis firm, encryption wallets linked to illegal activity may have received as much as $ 51 billion in 2024 only. The FATF report highlights the continuous challenges faced by governments to track and verify identities behind virtual asset transactions, a topic that directly hinders compliance actions.

The organization emphasized that StablecoinsDigital tokens linked to fiduciary coins are being exploited more and more by bad actors. These include terrorist financial, drug trafficking networks and cybercounts backed by the State, mainly North Koreawhich has been involved in a series of high profile binge.

In one of the most alarming cases, the The FBI reported that North Korean computer pirates were behind a theft of $ 1.5 billion of Crypto Exchange Bybit in February 2024, marking the theft of registered digital assets. North Korea has constantly denied any participation in cyber crimes.

Global regulators smile

Fatf’s findings are aligned with the warnings of other important financial regulators. In April, the Values ​​of European Union surveillance ratio He issued his own alert, warning that rapid growing cryptocurrencies could represent risks to the general market stability, especially as more interconnected with traditional finances.

Despite the clear threat, application and compliance remain unequal in global markets. Fatf asked member countries to Completely implement the “travel rule”which requires cryptographic companies to collect and share information from the sender and recipient about digital asset transfers, an essential measure to take energetic measures against money laundering and terrorist financing.

Also read: Cryptographic piracy robberies increase to $ 1.4 billion in the first half of 2024