Cryptocurrency regulations are increasingly consistent with global standards; 73% of eligible jurisdiction adopted provisions regarding the implementation of the principle of travel group travel group for financial (FATF).

The rule of travel requires cryptographic service providers to collect and share transaction data of users, as well as customary financial requirements. June 26 Fatf released The annual report presents how the last regulatory movements according to jurisdiction are convergent with its global money prevention framework (AML).

This is a direct result of the Fatf many years to adapt cryptocurrencies in accordance with the customary AML and counter -counter financing standards (CFT).

Fatf was distinguished by Stablecouins and decentralized finances (DEFI) for the second year in a row, emphasizing their growing exploit in illegal finances, including actors from North Korea. The organization said that it plans to free targeted articles on Stablecouins, offshore cryptographic platforms and DEFs until the next summer, indicating where global cryptocurrency regulations can be guided.

How Fatf became the spine of the cryptocurrency regulation

The principle of Fatf’s travel was expanded To cover cryptocurrencies and exchange in 2019 as part of the organization standards at AML/CFT. It was added to the recommendation 15 (R.15) – one of 40 FATF recommendations – as an interpretation note.

Of the 138 jurisdiction, only one reached full compliance with R.15 in 2025. Meanwhile, 40 jurisdictions were assessed as “largely consistent”, compared to 32 in 2024. Three jurisdictions were removed from the category of non -compliance.

Compliance means that jurisdiction has introduced provisions requiring licensing or registration of virtual asset service providers (VAPS)-Typacies as exchanges of cryptocurrencies and trade platforms-the lub identified legal persons conducting VASP activities. The requirements for the license in various jurisdictions are “very similar”, including in regions that fight the name “Crypto Hubs”, such as Singapore, Dubai and Hong Kong, Joshua Chu, co -chairman of the Hong Kong Web3 Association, said Cointelegraph.

Singapore monetary office, the city’s central bank, recently published warning That cryptographic exchange engaging in regulatory arbitration by avoiding local license and relying only on foreign clients. It was recommended to replace them with a license or exit by the end of June.

Related: Cryptographic Oosustapurian companies may not find shelter elsewhere

This movement caused a debate on whether Singapore really aims to become a power of digital assets. Some in the industry speculate that Hong Kong could benefit the regional rival in unlimited exchanges the most.

Chu warned that people looking for green pastures in competitive cryptographic hubs can be disappointed because they all follow the same FATF requirements. In fact, Singapore has spent more Cryptographic licenses than Hong Kong.

“The regulatory authorities are also fighters of the term. So they will announce ads at the last minute (probably knowing [FATF] The report of the report until then) to see how they can improve their position before the formal report left – said Chu.

“As a result, many jurisdiction accelerated efforts to tighten control, improve the risk assessment and enforce the Fatf travel principle. Fatf report in June 2025 reflects this urgency, showing that even progress has been made, significant gaps remain in the assessment of risk, licensing and enforcement.”

Hong Kong also ran to introduce additional principles of cryptocurrencies. In May, his upcoming regulation in Stablecoin passed Legislative Council. The city then published an updated political statement in Tandem with the FATF report.

Fatf said that the growing number of jurisdiction has now decided how they want to regulate their cryptographic sectors, with 82% of 163 respondents said that they identified their preferred regulatory approach. There are two main directions of jurisdictions: for permission or prohibition, with bans from partial to vibrant bans.

The ban is becoming more and more common among the task group for financial Africa in the Middle East and financial Africa and members of the group of counteracting washing from East Africa and South Africa. However, Fatf warns that jurisdictions should consider this approach carefully, because a full prohibition may be demanding resources and difficult to enforce.

“When jurisdictions decide to prohibit rather than regulate, they do not eliminate the presence of cryptocurrencies within their borders. Instead, they give up supervision, the enforcement of global task force and visibility to combat financial crime,” Hedi Navazan.

“Let’s be real, crypto is without borders,” she added.

China, a member of Fatf, partly forbade cryptocurrencies such as transactions and mining. But the decentralized nature of blockchain technology still makes cryptocurrencies largely available to society. Although Beijing forbade Bitcoin (BTC) mining, Chinese mining pools still control the majority of the network hashrat.

Stablecouins and DEFI in the Fatf Retention Center

Stablecouins and DEFI received their own sections in the Fatf report after the second year in a row in the latest update.

In particular, Stablecouins have so far been the biggest stories in Crypto in 2025, with great jurisdictions that develop legislative proposals regarding Stablecoin licensing, including Genius Act in the USA, which opens the door for technology companies to launch private Stablelecoin. The European Union has moved further with the markets in the regulations regarding cryptocurrencies (MICU), which sets rules for Sablelecoin issuers.

Related: The Senate transfers the Genius Stablecoin Bill among the fears of systemic risk

But Stablecouins are also increasingly related to illegal actions, including relying entities from North Korea suspected of financing the state of the state weapon, and industry estimates suggest that 63% of illegal transaction volumes have been denominated in Stablecoin.

“Stablecouins, especially USDT in the Throne network, in principle have become an tool of illegal actors. From North-Core’s hackers on the fraud network … This is not just a niche problem,” said Navazan.

Despite the growing regulatory attention, most jurisdiction still tries to apply FATF standards for DEFI. According to the FATF 2025 report, almost half of the jurisdictions that have implemented or are working on the principle of travel, claim that some DEFI platforms should be licensed as VAPS, but most did not identify such entities in practice.

Of the 47 jurisdiction, which claims that DEFs may be subject to VASP regulation, 75% have not yet been found or a license per DEFI platform.

Ignoring FATF standards can isolate the economy

The influence of FATF is set as part of the UN, with many resolutions of the UN Security Council urging Member States implementing FATF standards.

“This means that jurisdictions are in the face of robust, specific incentives to adapt their recipes to the evolving FATF standards, not only of good will, but in order to avoid solemn consequences,” said Chu.

Gray Listing serves as a powerful tool for FATF enforcement because it puts jurisdiction with increased monitoring, which causes economic and reputational consequences. Crypto Hub Dubai was previously on the gray list before the United Arab Emirates were removed in 2024.

“Although Fatf is not a law, you would be stupid to ignore it. When Fatf says, regulatory organs listen to the world. It always worked this way,” said Navazan.

“If your country is not compatible with these standards, it not only risks a indigent rating,” isolation risks. “

FATF statements, including annual cryptocurrency updates, offer a preview of where global regulations are going. Since Stablecouins and DEFs will appear as key areas of anxiety in 2025, it is expected that the planned FATF research on these sectors will shape another wave of compliance measures.

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