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According to Cointelegraph, the Financial Action Task Force (FATF), a global anti-money laundering regulatory body, has released a new report indicating that offshore virtual asset service providers (oVASP) pose risks of money laundering, sanctions evasion, and other illegal financial activities.The report points out that some offshore cryptocurrency companies exploit differences in regulatory and supervisory coverage, making it difficult for authorities to effectively monitor transactions and enforce anti-money laundering (AML) and counter-terrorist financing regulations. As many offshore crypto businesses operate across multiple jurisdictions, such as differing locations for company registration, infrastructure, and customers, regulators find it challenging to clarify regulatory responsibilities, which also limits international cooperation.FATF recommends that countries require offshore companies providing services to register or obtain licenses, even if they operate abroad, and strengthen cross-border regulatory and law enforcement cooperation. Additionally, FATF has previously warned that peer-to-peer stablecoin transactions and non-custodial wallets may undermine AML regulation, necessitating national-level risk assessments and the establishment of protective mechanisms.

The global anti-money laundering organization Financial Action Task Force (FATF) pointed out in its latest report that stablecoin peer-to-peer (P2P) transfers have become a key source of money laundering risk in the crypto ecosystem, especially when users trade directly through unmanaged wallets, making it more difficult to track and regulate related activities due to the lack of regulated intermediaries.FATF stated that stablecoins have now become the most commonly used virtual assets in illegal crypto transactions. According to Chainalysis data, approximately 84% of the $154 billion in illegal crypto transactions in 2025 involved stablecoins. The report recommends that jurisdictions require stablecoin issuers to have the technical capability to freeze, destroy, or blacklist assets involving suspicious addresses when necessary, and to embed compliance features such as allow-lists and deny-lists in smart contracts.FATF noted that compared to the highly volatile Bitcoin and Ethereum, stablecoins like Tether (USDT) and USD Coin (USDC) are increasingly being used by criminal networks for fund transfers and money laundering activities due to their price stability, high liquidity, and ease of cross-border transfer. Additionally, the report mentioned that North Korean hacker groups and entities linked to Iran are using stablecoins to launder proceeds from cybercrime and are converting funds into fiat currency through over-the-counter traders or peer-to-peer platforms.FATF calls for strengthened regulation of stablecoin issuers and encourages the broader adoption of blockchain analysis tools and anti-money laundering measures such as the "travel rule" within the crypto industry.

According to Cointelegraph, the Financial Action Task Force (FATF), an international anti-money laundering regulatory body, pointed out in its latest report that peer-to-peer (P2P) stablecoin transfers via self-custody wallets have become a critical vulnerability in the cryptocurrency ecosystem, as they can bypass anti-money laundering (AML) regulations.The FATF emphasized that such transactions can be completed without going through regulated intermediaries, creating a regulatory gap. The report indicates that by 2025, stablecoins will account for 84% of the total volume of illegal transactions, becoming a primary tool for evading sanctions and other illicit activities. Although blockchain transactions are traceable, the anonymity of wallet addresses increases the difficulty of attribution. The FATF calls on countries to assess the risks posed by stablecoin arrangements and to take commensurate mitigation measures, including enhancing monitoring when self-custody wallets interact with regulated platforms, as well as clarifying the AML obligations of stablecoin issuers and distributors.

According to CoinDesk, the Financial Action Task Force (FATF) has released a report warning that stablecoins have become the most widely used virtual assets in illegal transactions, calling for increased regulation of issuers.The report cites data from Chainalysis, indicating that by 2025, stablecoins will account for 84% of the volume of illegal virtual asset transactions, involving an amount of $154 billion. A report from TRM Labs shows that by 2025, illegal entities will receive $141 billion in stablecoins, reaching a five-year high, with sanction-related activities accounting for 86% of illegal crypto fund flows. Actors such as Iran and North Korea are using stablecoins like USDT for financing weapons of mass destruction and cross-border sanctioned payments.The FATF warns that peer-to-peer transfers conducted through non-custodial wallets represent a key vulnerability, as these transactions can bypass anti-money laundering controls. The FATF urges countries to impose anti-money laundering obligations on stablecoin issuers and consider requiring them to have wallet freezing capabilities and to restrict certain functionalities of smart contracts. The current market capitalization of stablecoins has exceeded $300 billion.

According to Cryptopolitan, the head of Belarus's main auditing agency stated that in preparation for the evaluation by the Financial Action Task Force (FATF, equivalent to the regional anti-money laundering organization EAG), the authorities have established and are updating a dedicated registry for recording the cryptocurrency wallets of criminals.The official also noted that Belarus has passed regulations regarding the taxation of cryptocurrency transactions, as well as other measures to ensure transparency in the digital asset sector.

According to Crowdfund Insider, the Parliament of Trinidad and Tobago passed the Virtual Assets and Virtual Asset Service Providers Bill with a vote of 25 to 11, establishing a regulatory framework for cryptocurrency activities in the Caribbean nation.The bill aims to meet the anti-money laundering and counter-terrorist financing standards set by the Financial Action Task Force (FATF) in response to the FATF's on-site assessment scheduled for March 2026. Chaos erupted before the bill's passage, with the opposition accusing the government of submitting a 48-page document containing over 200 amendments just minutes before the debate began, violating parliamentary procedure.Critics are concerned that the bill's strictness may hinder innovation, but the government insists that the amendments are based on extensive consultations with the central bank, securities regulators, and industry participants.

ChainCatcher news, according to Bloomberg, Turkey is preparing to grant its financial crime regulatory agency—the Financial Crimes Investigation Board (Masak)—greater powers to freeze and restrict access to bank accounts and cryptocurrency accounts as part of efforts to combat money laundering and financial crime.Informed sources revealed that the proposed measures align with the anti-money laundering standards set by the Financial Action Task Force (FATF) and are expected to be implemented through a bill submitted to Parliament. If the new regulations are approved, Masak will have the authority to close accounts suspected of illegal use, as well as impose transaction limits, suspend mobile banking accounts, and blacklist cryptocurrency addresses associated with crime.The bill still in draft form primarily targets the practice of "renting" accounts, where criminals pay to use others' accounts for illegal gambling and fraud. These changes are expected to be included in the 11th judicial package, submitted for review in the new legislative year, and the regulations may be amended and not necessarily passed in their current form.

ChainCatcher news, according to Jinshi reports, the chairman of the Financial Action Task Force (FATF) stated that countries must be more transparent in disclosing the owners of shell companies, which is a key issue in the new round of assessments.He pointed out that criminals are increasingly using cryptocurrencies to transfer funds across borders.

ChainCatcher news, according to Cointelegraph, the Financial Action Task Force (FATF) recently issued a warning regarding the rise of criminal activities involving stablecoins. Executives from blockchain analysis companies Chainalysis and Asset Reality stated that this move aims to strengthen regulation rather than restrict industry development. Data shows that by 2025, stablecoins will account for 63% of the total volume of illegal crypto transactions.Chainalysis policy advisors pointed out that the FATF calls for countries to unify regulatory standards for stablecoin issuers, implement real-time monitoring, and enhance international cooperation. The co-founder of Asset Reality emphasized the need to apply traditional financial anti-money laundering standards to the digital asset space. In 2023, Tether froze $225 million in USDT related to fraud at the request of the United States.

ChainCatcher news, according to Cointelegraph, although countries like China, Indonesia, and Russia prohibit retail crypto payments, legal experts point out that residents in these countries still operate in a legal gray area when using cryptocurrencies to pay for overseas services. After the Georgian travel company Tripzy opened a USDT payment channel through CityPay in June 2025, tourists from Russia and Turkey can book services across borders using stablecoins, as neither country's laws explicitly prohibit such actions.A partner at the Turkish law firm Paldimoglu stated that their "Regulation on the Prohibition of Payments in Crypto Assets" only restricts local licensed institutions; the founder of Russia's D&A CryptoMap also confirmed that the country's laws do not restrict overseas crypto payments. However, legal overlaps pose regulatory risks, and experts warn that such transactions may be viewed by the West as a "loophole for evading sanctions."The latest report from the Financial Action Task Force (FATF) shows that as of 2024, the proportion of illegal transactions involving stablecoins has risen to 50%, including those related to North Korean hackers and terrorism financing. The agency announced that it will release a special assessment report on anti-money laundering for stablecoins in Q1 2026.

ChainCatcher news, according to Bitcoin.com, the South African Financial Intelligence Centre has issued Directive No. 9, requiring digital asset platforms to collect and store identity information for cryptocurrency transactions.This directive will take effect on April 30, 2025, and aims to help South Africa be removed from the Financial Action Task Force (FATF) grey list. The grey list affects the country's reputation, increases the cost of financial transactions, and raises borrowing costs.According to the directive, the full names and wallet addresses of both parties in a transaction must be recorded, with stricter requirements when the transaction amount exceeds $277 (5,000 rand). Sean Sanders, CEO of Altify, expressed support for regulatory developments but questioned the $277 threshold, calling it the lowest globally.

ChainCatcher news, the Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) emphasized that even if the Financial Action Task Force (FATF) decides to blacklist Russia, its anti-money laundering system will continue to operate effectively. Previous assessments mentioned issues related to virtual currency regulation, but Rosfinmonitoring insists that these issues have been resolved.According to TASS, the regulatory agency stated: "The Russian Federation has improved its ratings on three FATF recommendations, with only one being downgraded to 'partially compliant' due to insufficient legislative regulation in the field of virtual currency circulation."However, Rosfinmonitoring pointed out that since these assessments, Russia has passed two federal laws to strengthen its digital currency regulatory framework. The agency added: "Since then, the Russian Federation has passed two federal laws regulating the circulation of digital currencies."It is reported that the FATF is an intergovernmental organization that sets global standards for anti-money laundering and combating the financing of terrorism. Whether Russia will be blacklisted will be discussed at the FATF plenary meeting from October 21 to 25.

ChainCatcher news, according to News.bitcoin, based on data from the Financial Action Task Force (FATF), 97 out of 130 jurisdictions "partially or not at all" comply with anti-money laundering recommendations for the virtual asset sector. 88 jurisdictions (60%) have decided to allow virtual asset service providers (VASP), while 14% (20 jurisdictions) explicitly prohibit them. The FATF claims that stablecoins and privacy-enhanced cryptocurrencies are increasingly being used by terrorist organizations and "rogue states."

ChainCatcher news, according to CoinDesk, the chairman of the Financial Action Task Force (FATF), T. Raja Kumar, stated that according to a report, as of June 2023, less than 30% of jurisdictions worldwide have begun to regulate cryptocurrencies.The report explores which jurisdictions have complied with FATF's recommendations, stating that countries need to take this issue seriously and urging them to take action. The report points out that the lack of regulation on cryptocurrencies "provides significant loopholes for criminals and terrorists," and emphasizes the urgency of strengthening regulation globally.

ChainCatcher news, the Argentine government is preparing to regulate cryptocurrency service providers through an executive order. The measure aims to keep Argentina off the Financial Action Task Force (FATF) gray list and place cryptocurrency lending institutions under the supervision of local securities regulators.According to the new decree, all cryptocurrency service providers must register with the national cryptocurrency regulatory agency and operate under a license provided by that organization, even if they are not located in Argentina. Additionally, these institutions must provide information to the national intelligence agency to comply with anti-money laundering laws, forcing cryptocurrency service providers to issue risk reports and report suspicious activities.The executive order is set to be published before March 6, when the FATF will visit Argentina to assess the anti-money laundering measures implemented since their last visit.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) requires UK virtual asset service providers (VASP) to comply with the FATF travel rule starting September 1, collecting, verifying, and sharing information related to domestic and cross-jurisdictional transactions.The FCA also requires UK cryptocurrency companies to regularly review the implementation of the travel rule in other jurisdictions and adjust their business processes as appropriate. When sending cryptocurrency to jurisdictions without travel rules, if the necessary information cannot be obtained, crypto asset businesses must still collect and verify information in accordance with anti-money laundering regulations (MLR) and should store that information before conducting the crypto asset transfer.The travel rule aims to enhance the transparency of crypto asset transfers, advancing global anti-money laundering (AML) and counter-terrorism financing (CTF) efforts by helping crypto asset businesses detect suspicious transactions and conduct effective sanctions screening.

ChainCatcher news, the Financial Action Task Force (FATF) third plenary meeting pointed out that four years after strengthening standards for virtual assets and virtual asset service providers (VASP), the global implementation of these measures remains relatively poor. Nearly three-quarters of jurisdictions only partially comply or do not comply with FATF's requirements. Many jurisdictions have yet to implement basic requirements, and more than half of the respondents have taken no action to implement the "Travel Rule." This rule is a key requirement proposed by FATF to prevent funds from being transferred to sanctioned individuals or entities. FATF calls on all countries to apply anti-money laundering / counter-terrorism financing rules to virtual asset service providers without further delay.On June 27, FATF will release a report urging countries to swiftly implement FATF's recommendations regarding virtual assets and VASP, including the Travel Rule, to address these vulnerabilities. The report also highlights emerging risks, including illegal virtual asset-related activities used by North Korea to fund its weapons of mass destruction programs, as well as risks from DeFi and peer-to-peer trading. In addition, FATF stated it will continue to promote global compliance and will publish a table in the first half of 2024 showing what measures FATF member jurisdictions and other jurisdictions with significant virtual asset trading activities have taken to implement Recommendation 15. (source link)

ChainCatcher news, a report released by the Financial Action Task Force (FATF), a global anti-money laundering regulatory body, shows that Qatar banned cryptocurrency providers in 2019, but the country has taken little action against cryptocurrency companies that violate the ban announced in 2019. The FATF urged the Qatar Central Bank (QCB) to more actively identify and sanction virtual asset service providers (VASP) that violate its crypto ban. (source link)