Latest news with #FinancialActionTaskForce
Express Tribune
11 hours ago
- Business
- Express Tribune
FATF sounds alarm on crypto regulation gaps
The Financial Action Task Force (FATF) has warned of the risks of virtual assets being used for money laundering, terror financing and other illicit activities, and stressed the need for urgent global action. The Paris-based global financial watchdog called on countries to take stronger action to combat illicit finance in crypto assets, warning that gaps in regulation could have global repercussions. It said that progress has been made since 2024 in regulating virtual assets, many jurisdictions still have work to do. As of April 2025, only 40 of 138 jurisdictions assessed were "largely compliant" with FATF's crypto standards, up from 32 a year earlier, FATF said in a statement. "With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences," it added. FATF also raised concerns about the use of stablecoins, a type of cryptocurrency pegged to fiat currencies, by "various illicit actors", including North Korea, terrorist financiers and drug traffickers. It said most illicit crypto activity now involves stablecoins.
Business Recorder
3 days ago
- Business
- Business Recorder
FATF calls for action on crypto risks
PARIS: The Financial Action Task Force (FATF), a global financial crime watchdog, on Thursday called on countries to take stronger action to combat illicit finance in crypto assets, warning that gaps in regulation could have global repercussions. The Paris-based watchdog said that while progress has been made since 2024 in regulating virtual assets, many jurisdictions still have work to do to combat risks. As of April 2025, only 40 of 138 jurisdictions assessed were 'largely compliant' with FATF's crypto standards, up from 32 a year earlier. 'With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences,' FATF said in a statement. Illicit crypto wallet addresses may have received up to $51 billion in 2024, according to blockchain analytics firm Chainalysis. FATF said that countries continue to face difficulties in identifying who is behind virtual asset transactions. The report is the latest sign of rising concern among financial authorities about crypto-related risks to the financial system. In April, the EU's securities watchdog warned that the expanding crypto sector could pose risks to broader financial stability, especially as links with traditional markets deepen. FATF also raised concerns about the use of stablecoins, a type of cryptocurrency pegged to fiat currencies, by 'various illicit actors', including North Korea, terrorist financiers and drug traffickers. It said most illicit crypto activity now involves stablecoins. The FBI has said that North Korea was responsible for the theft of approximately $1.5 billion worth of virtual assets from crypto exchange ByBit in February - the largest ever crypto theft. North Korea routinely denies involvement in cyber hacking or crypto heists.
Yahoo
3 days ago
- Business
- Yahoo
The $51 Billion Crypto Secret: Why Stablecoins Are Now the #1 Tool for Criminals
In a newly released report, the Financial Action Task Force (FATF) says stablecoinsthose dollar-pegged crypto tokens everyone's trying to mainstreamare now the most commonly used tools for illegal activity on the blockchain. From fraud rings to North Korean hackers, illicit actors are increasingly moving money through stablecoins, especially Tether on the Tron network. The FATF highlights how stablecoins' key strengthslow cost, high speed, and price stabilityare also exactly what criminals want. And while global oversight is improving, the task force says major blind spots remainespecially around unhosted wallets that operate outside traditional financial systems. Warning! GuruFocus has detected 6 Warning Sign with META. Meanwhile, Washington is moving in the opposite direction. The U.S. Senate just passed the Genius Act, aimed at pulling stablecoins into the regulatory fold and making them more accessible to the public. That's triggered a wave of activity. Circle (NYSE:CRCL), the issuer of USDC, went public earlier this month, and its stock has already jumped more than 6x. A company linked to Donald Trump's familyWorld Liberty Financial now pushing its own stablecoin initiative. On the surface, it looks like the U.S. is all-in. But the FATF warns that as these tokens become more embedded in daily finance, their misuse could scale just as fast. The bigger picture? Roughly $51 billion in fraud- and scam-related on-chain transactions took place in 2024 alone, according to the report. And while stablecoins could one day sit quietly in the background of the financial system, like the Bank for International Settlements recently noted, that's far from guaranteed. Especially not with decentralized apps muddying the waters, and enforcement lagging behind innovation. FATF says it's drafting new rules for stablecoins due next year. Until then, investors eyeing the spaceespecially names like Circlemight be riding a powerful growth story... with regulators closing in fast. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Criminal Use of Stablecoins Continues Growing, Task Force Says
Most illegal activity happening on cryptocurrency ledgers now involves the tokens known as stablecoins, according to a report released on Thursday by an intergovernmental body that develops policies to protect the global financial system against money laundering and terrorist financing. The findings in the new report from the Financial Action Task Force land just as US lawmakers and businesses are pushing for the wider distribution of stablecoins, crypto tokens that are pegged to the dollar or some other national currency.
Yahoo
3 days ago
- Business
- Yahoo
Global financial crime watchdog calls for action on crypto risks
By Elizabeth Howcroft PARIS (Reuters) -The Financial Action Task Force (FATF), a global financial crime watchdog, on Thursday called on countries to take stronger action to combat illicit finance in crypto assets, warning that gaps in regulation could have global repercussions. The Paris-based watchdog said that while progress has been made since 2024 in regulating virtual assets, many jurisdictions still have work to do to combat risks. As of April 2025, only 40 of 138 jurisdictions assessed were "largely compliant" with FATF's crypto standards, up from 32 a year earlier. "With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences," FATF said in a statement. Illicit crypto wallet addresses may have received up to $51 billion in 2024, according to blockchain analytics firm Chainalysis. FATF said that countries continue to face difficulties in identifying who is behind virtual asset transactions. The report is the latest sign of rising concern among financial authorities about crypto-related risks to the financial system. In April, the EU's securities watchdog warned that the expanding crypto sector could pose risks to broader financial stability, especially as links with traditional markets deepen. FATF also raised concerns about the use of stablecoins, a type of cryptocurrency pegged to fiat currencies, by "various illicit actors", including North Korea, terrorist financiers and drug traffickers. It said most illicit crypto activity now involves stablecoins. The FBI has said that North Korea was responsible for the theft of approximately $1.5 billion worth of virtual assets from crypto exchange ByBit in February - the largest ever crypto theft. North Korea routinely denies involvement in cyber hacking or crypto heists. Sign in to access your portfolio
