FATF urges tighter oversight of crypto assets

30.06.2025

On June 26, 2025, the Financial Action Task Force (FATF), the leading international body for combating financial crime, released a critical report urging governments to urgently raise their standards for crypto asset regulation. According to the FATF, only 40 out of 138 jurisdictions assessed were found to be “largely compliant” as of April 2025, highlighting little progress since last year. Key findings from the report inсlude:

• Crypto wallets associated with illicit activity received up to $51 billion in 2024. A portion of these transactions involved stablecoins.
• Stablecoins pegged to fiat currencies are increasingly being used in financing terrorism, drug trafficking, and cyberattacks, including operations by North Korean hacker groups.
• February 2025 saw the largest-ever crypto heist: $1.5 billion was stolen from the ByBit exchange. The FBI suspects the Lazarus Group, despite official denials from North Korea.

The FATF emphasized: “Virtual assets are inherently cross-border, and weak regulation in one country creates risks for the entire global financial ecosystem.” This strong statement serves as another wake-up call for regulators worldwide. On one hand, it exposes the scale of financial abuse in the crypto space; on the other, it highlights the urgent need to develop and enforce robust oversight mechanisms. Major financial institutions, including European regulatory bodies, are already expressing growing concern over the potential risks crypto markets pose to financial stability.