Global Watchdog Sets Sights on Crypto Sector

The Financial Action Task Force (FATF) is quietly shaping cryptocurrency regulations worldwide, with stablecoins and decentralized finance platforms emerging as the next targets for increased scrutiny. Recent data shows 【73%】 of eligible jurisdictions have now implemented the FATF's Travel Rule, marking significant progress in aligning crypto with traditional financial oversight standards.

The Compliance Landscape Shifts

As of June 2025, only one jurisdiction—The Bahamas—has achieved full compliance with FATF's Recommendation 15, which governs virtual asset service providers. However, 40 countries now rank as "largely compliant," up from 32 in 2024. This push for standardization has created remarkable uniformity among would-be crypto hubs like Singapore, Dubai, and Hong Kong.

——"Regulators are deadline fighters," observes Joshua Chu of Hong Kong Web3 Association. "Many accelerate controls when FATF reports loom"——

Stablecoins Under Microscope

The report highlights growing concerns about stablecoins, which accounted for 【63%】 of illicit crypto transactions in 2024-2025. Particular attention focuses on Tron-based USDT, described as the "go-to tool" for bad actors ranging from North Korean hackers to scam networks. This comes as major economies advance stablecoin legislation, including the U.S. GENIUS Act and EU's MiCA framework.

DeFi's Regulatory Paradox

While 47 jurisdictions claim DeFi platforms can qualify as virtual asset service providers, 【75%】 haven't identified or licensed a single DeFi entity. Only four regions have formally registered DeFi projects, creating what experts call a "regulatory blind spot" in the rapidly growing sector.

The Cost of Non-Compliance

FATF's standards carry weight through UN Security Council resolutions and the threat of "gray listing"—a designation that can isolate economies. Former gray-listed Dubai only regained standing in 2024 after strengthening its oversight framework. As one compliance officer notes: "When FATF speaks, regulators listen. Ignoring them risks becoming isolated."

The watchdog plans to release targeted papers on stablecoins, offshore platforms, and DeFi by summer 2026, signaling where the next regulatory waves may break. With $30 trillion in stablecoin volume recorded since May 2024, these developments could reshape crypto's global landscape.