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Business Recorder
04-07-2025
- Business
- Business Recorder
FATF & Pak quest for cryptocurrency
Recognising the global shift toward digital finance, the government of Pakistan has recently initiated concrete steps to legalize cryptocurrency. This shift gained momentum following the Crypto Council's resolution to develop a comprehensive regulatory framework aligned with international standards. The decision comes at a time when the Financial Action Task Force (FATF), in its sixth targeted update published on 26 June 2025, has emphasized the urgent need for jurisdictions to implement robust Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) measures concerning Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). This FATF update serves as a pivotal guidepost for Pakistan as it endeavours to pose as a responsible participant in the global crypto ecosystem, echoing global expectations articulated in Recommendation 15 (R.15) and its interpretative note (INR.15), the bases for regulating this sector since 2019. FATF's latest report acknowledges progress made globally, including jurisdictions with materially significant VASP activity, those constituting approximately 98% of this market. The report reveals that 138 jurisdictions have been assessed under R.15 as of April 2025, of which only 1 jurisdiction is rated as fully compliant while 40 jurisdictions (29%) rated largely compliant, showing modest advancement from 2024. FATF's findings underline that despite significant regulatory developments, including Pakistan's recent legal and institutional overtures, fundamental implementation gaps remain. FATF highlights the inability of many jurisdictions to identify natural or legal persons conducting VASP activities, lack of enforcement against offshore entities, and significant challenges in implementing Travel Rule which mandates the sharing of sender and receiver information during VA transfers. This Travel Rule has been legislated in 85 of 117 jurisdictions as of 2025, yet enforcement remains weak. FATF particularly urges jurisdictions, including Pakistan, to formulate comprehensive risk assessments of VAs and VASPs. FATF's 2025 report shows that only 76 percent of jurisdictions have completed such assessments. Despite this, a critical shortcoming remains in the operationalization of supervisory frameworks. FATF calls for immediate actions such as licensing, risk-based supervision, and enforcement measures. In Pakistan's case, the regulatory trajectory must include legislation that addresses both domestic and offshore VASP activity, integrating preventive mechanisms to mitigate risks related to money laundering (ML), terrorist financing (TF), and proliferation financing (PF). The report also sheds light on emergent and growing risks. Democratic People's Republic of Korea's (DPRK) record-setting $1.46 billion theft from the VASP ByBit in 2025 and the subsequent laundering of funds through 125,000 Ethereum wallets exemplifies the scope of cross-border cyber exploitation. Only 3.8% of these funds have been recovered, underlining the urgent need for enhanced asset recovery mechanisms. FATF's report also reveals that US$51 billion in illicit activity from fraud and scams was conducted through virtual assets in 2024, and much of it involved stablecoins, which have grown to dominate the volume of on-chain illicit transactions. FATF identifies the use of USDT on the Tron network as a preferred channel for criminal actors due to its transaction speed and anonymity-enhancing capabilities. FATF's recommendations for public authorities include five primary priorities. Firstly, jurisdictions must finalize ML/TF/PF risk assessments and implement mitigation strategies. Secondly, jurisdictions must either fully regulate or clearly prohibit VAs and VASPs—with a caution that prohibition is often difficult to enforce effectively. Thirdly, regulatory frameworks must include licensing and identification mechanisms, including offshore VASPs. Fourthly, Travel Rule should be legislated and operationalized with urgency. Lastly, regulators must monitor and address risks arising from stablecoins, DeFi arrangements, and fraud ecosystems involving AI-enabled frauds and unregulated wallets. For the private sector, FATF calls on VASPs to improve risk assessment capabilities, mitigate stablecoin-specific threats, and adopt measures that respond to scams such as address poisoning and pig butchering. FATF also outlines its roadmap for the Virtual Assets Contact Group (VACG), which includes preparing targeted reports on DeFi, stablecoins, and offshore VASPs between October 2025 and June 2026. These reports will guide future regulatory calibrations. The VACG is also tasked with maintaining the updated public table of jurisdictions with materially important VASP activity, which now includes nine additional non-FATF jurisdictions for 2025. FATF urges jurisdictions to designate unregulated VASPs as higher-risk and encourages adoption of 2021 updated guidance on a risk-based approach. The current implementation status for Recommendation 15 shows improvement yet persistent challenges. Of the 138 jurisdictions assessed as of April 2025, 29% are rated largely compliant (up from 25% in 2024), 49% are partially compliant, and 21% remain non-compliant. Only one jurisdiction globally is rated fully compliant. Within the Travel Rule domain, while 73% of jurisdictions have passed relevant legislation, only 41% have operationalized it through enforcement or supervision. FATF notes that the lack of coordination between jurisdictions remains a significant vulnerability given the borderless nature of VAs. FATF's annexed table reveals that countries like the Bahamas, Malta, and Luxembourg have achieved considerable implementation success. In contrast, countries such as Pakistan, which are in the process of formalizing legal and institutional measures, must accelerate their alignment with the FATF's standards. As Pakistan advances toward regulating its crypto landscape, learning from these jurisdictions' approaches especially around licensing, risk assessment, and enforcement will be essential. Pakistan must address three immediate challenges for way forward. The first is technical: establishing clear and enforceable definitions for VAs and VASPs in domestic law that harmonize with FATF's interpretive note. The second is regulatory: building a risk-based framework that includes licensing requirements, identifies legal and natural persons operating VASPs, and implements the Travel Rule with enforceable supervision. The third is institutional: enhancing the capacity of regulators, law enforcement, and financial intelligence units to monitor, investigate, and prosecute crimes involving virtual assets. Pakistan should also prioritize public-private partnerships with blockchain analytics firms, adopt cross-border cooperation protocols, and develop public registries for licensed VASPs. FATF's support for technical assistance, as expressed in its engagement with VACG and Global Network, offers a valuable window for Pakistan to request targeted help in closing compliance gaps. The government's decision to legalize cryptocurrency is timely and strategically aligned with FATF's global roadmap. However, without a technically sound and enforceable regulatory regime grounded in FATF's Recommendation 15, Pakistan risks falling short of global compliance standards. The country must now move swiftly to codify regulations, build institutional capacity, and participate in the international supervisory ecosystem for virtual assets. This will not only ensure FATF compliance but also position Pakistan as a credible and secure player in the global digital economy. Copyright Business Recorder, 2025
Crypto Insight
02-07-2025
- Business
- Crypto Insight
FATF's crypto checklist hints at the next regulatory crackdown
Cryptocurrency regulations are increasingly aligning with global standards; 73% of eligible jurisdictions have now passed laws to implement the Financial Action Task Force's (FATF) Travel Rule. The Travel Rule mandates crypto service providers to collect and share users' transaction data, similar to traditional finance requirements. On June 26, the FATF released its annual report that outlines how recent regulatory moves by jurisdictions are converging with its global Anti-Money Laundering (AML) framework. This is a direct result of a years-long campaign by the FATF to bring cryptocurrencies in line with traditional AML and Counter-Terrorist Financing (CFT) standards. The FATF spotlighted stablecoins and decentralized finance (DeFi) for the second consecutive year, highlighting their rising use in illicit finance, including by North Korean actors. The organization said it plans to release targeted papers on stablecoins, offshore crypto platforms and DeFi by next summer, hinting at where global crypto regulation may head next. How the FATF became the backbone of crypto regulation The FATF's Travel Rule was extended to cover cryptocurrencies and exchanges in 2019 as part of the organization's standards on AML/CFT. It was added to Recommendation 15 (R.15) — one of FATF's 40 recommendations — as an interpretive note. Out of 138 jurisdictions, only one has achieved full compliance with R.15 in 2025. Meanwhile, 40 jurisdictions were assessed as 'largely compliant,' up from 32 in 2024. Three jurisdictions were removed from the noncompliance category. Compliance means a jurisdiction has enacted laws requiring the licensing or registration of virtual asset service providers (VASPs) — such as cryptocurrency exchanges and trading platforms — or has identified the legal persons conducting VASP-related activities. The licensing requirements across jurisdictions are 'very similar,' including in regions vying to be labeled as 'crypto hubs,' such as Singapore, Dubai and Hong Kong, Joshua Chu, co-chair of the Hong Kong Web3 Association, told Cointelegraph. The Monetary Authority of Singapore, the city-state's central bank, recently issued a warning to crypto exchanges engaging in regulatory arbitrage by avoiding a local license and relying solely on overseas customers. The exchanges were advised to either get licensed or exit by the end of June. The move sparked debate over whether Singapore truly aims to become a powerhouse for digital assets. Some in the industry speculate that Hong Kong could benefit most from its regional rival's crackdown on unlicensed exchanges. Chu warned that those looking for greener pastures in competing crypto hubs may end up disappointed, as all are adhering to the same FATF requirements. In fact, Singapore has issued more crypto licenses than Hong Kong. 'Regulators are also deadline fighters. So, they will make last-minute announcements (probably knowing the [FATF] draft of the report by that point) to see how they can improve their position before the formal report comes out,' Chu said. 'As a result, many jurisdictions have accelerated efforts to tighten controls, improve risk assessments and enforce the FATF Travel Rule. The FATF's June 2025 report reflects this urgency, showing that while progress has been made, significant gaps remain in risk assessment, licensing and enforcement.' Hong Kong has also been sprinting to roll out additional crypto rules. In May, its upcoming Stablecoin Ordinance passed the Legislative Council. The city then released an updated policy statement in tandem with FATF's report. The FATF said an increasing number of jurisdictions have now decided how they want to regulate their respective crypto sectors, with 82% of 163 respondents stating they've identified their preferred regulatory approach. There are two main directions jurisdictions can take: to permit or to prohibit, with prohibitions ranging from partial to blanket bans. Prohibition is becoming more common among Middle East and North Africa Financial Action Task Force and Eastern and Southern Africa Anti-Money Laundering Group members. However, the FATF warns that jurisdictions should consider this approach carefully, as full prohibition can be resource-intensive and difficult to enforce. 'When jurisdictions choose to prohibit rather than regulate, they do not eliminate the presence of crypto within their borders. Instead, they relinquish oversight, enforcement leverage and visibility into illicit flows,' Hedi Navazan, chief compliance officer of 1inch Labs and vice chair of the Digital Asset Task Force of the Global Coalition to Fight Financial Crime, told Cointelegraph. 'Let's be real, crypto is borderless,' she added. China, an FATF member, has partially prohibited cryptocurrency-related activities, such as transactions and mining. But the decentralized nature of blockchain technology still makes cryptocurrencies largely accessible to the public. Although Beijing has banned Bitcoin mining, Chinese mining pools continue to control the majority of the network's hashrate. Stablecoins and DeFi under the FATF spotlight Stablecoins and DeFi got their own sections in FATF's report for the second consecutive year in the latest update. Stablecoins, in particular, have been among the biggest stories in crypto in 2025 so far, with major jurisdictions advancing legislative proposals for stablecoin licensing, including the GENIUS Act in the US, which opens doors for tech firms to launch private stablecoins. The European Union has pushed further with Markets in Crypto-Assets (MiCA) Regulation, which sets rules for stablecoin issuers. But stablecoins have also been increasingly tied to illicit activities, including reliance by North Korean actors suspected of financing the state's weapons program, with industry estimates suggesting 63% of illicit transaction volumes were denominated in stablecoins. 'Stablecoins, especially USDT on the Tron network, have basically become the go-to tool for illicit actors. From North Korean hackers to scam networks… this isn't just a niche problem anymore,' said Navazan. Despite growing regulatory attention, most jurisdictions are still struggling to apply FATF standards to DeFi. According to the FATF's 2025 report, nearly half of the jurisdictions that have implemented or are working on the Travel Rule say that some DeFi platforms should be licensed as VASPs, but most haven't identified any such entities in practice. Out of 47 jurisdictions that claim DeFi can fall under VASP regulation, 75% have yet to find or license a single DeFi platform. Ignoring FATF standards can isolate an economy The FATF's influence is embedded within the United Nations framework, with multiple UN Security Council resolutions urging member states to implement FATF standards. 'This means jurisdictions face strong, concrete incentives to align their laws with FATF's evolving standards, not merely out of goodwill but to avoid severe consequences,' Chu said. Gray listing serves as a powerful enforcement tool for FATF, as it places a jurisdiction under increased monitoring, resulting in economic and reputational consequences. Budding crypto hub Dubai was formerly on the gray list before the United Arab Emirates was removed in 2024. 'While FATF does not make the law, you would be foolish to ignore it. When FATF speaks, regulators around the world listen. That's how it's always worked,' said Navazan. 'If your country doesn't align with those standards, it doesn't just risk a poor rating — it risks becoming isolated.' The FATF's statements, including its annual updates on crypto, offer a preview of where global regulations are headed. With stablecoins and DeFi emerging as key areas of concern in 2025, the FATF's planned research into these sectors is expected to shape the next wave of compliance measures. Source:
Arabian Post
28-06-2025
- Business
- Arabian Post
BYDFi Amplifies Web3 Push at Seoul Meta Week
BYDFi, the Seychelles‑based crypto exchange, confirmed its role as an official partner at Seoul Meta Week 2025: METACON, held on 26–27 June at COEX's third‑floor auditorium, joining industry giants such as Samsung, Google, Intel, Spotify, Kakao and GitHub. Booth 11 at the event quickly emerged as a high‑traffic hub, drawing crowds eager to engage with BYDFi's team and claim exclusive merchandise designed for attendees. Michael, co‑founder and CEO of BYDFi, praised Seoul Meta Week as 'a venue to share our latest innovations and connect with forward‑thinking builders and traders from across the region'. In tandem with its showcase, BYDFi announced its membership in South Korea's CODE VASP Alliance. The move incorporates full integration of Travel Rule compliance technology, aligning with the nation's Act on Reporting and Using Specific Financial Transaction Information. The exchange says this step strengthens transparency in cross‑platform asset transfers and positions BYDFi as a more secure and regulation‑aligned platform. ADVERTISEMENT According to the company, this initiative forms part of a strategy to build a more unified global compliance framework, elevating industry standards and boosting user confidence. In April, BYDFi launched MoonX at Paris Blockchain Week: a Web3 on‑chain trading platform integrated with Solana and BNB Chain. MoonX features real‑time market data, Smart Money tracking and copy‑trading for memecoin enthusiasts, signalling BYDFi's evolution into a combined CEX‑DEX 'dual‑engine' operator. Its presence at SMW 2025 emphasises this integration of centralised exchange speed with decentralised ecosystem transparency. Founded in 2020, BYDFi serves over one million users in more than 190 countries. In 2025, Forbes named it among the best crypto exchanges and apps for beginners. Its platform spans spot and perpetual contracts, automated bots, copy trading and on‑chain tools, offering multi‑channel support for both novice and experienced traders. Industry analysts note that compliance remains a central challenge for crypto exchanges seeking entry into regulated Asian markets. BYDFi's involvement with CODE VASP and METACON suggests a strategic push to meld technological innovation with regional regulatory adherence. The Travel Rule technology integration is poised to set a precedent for exchanges aiming to enter South Korea's tightly supervised financial landscape. BYDFi's CEX‑DEX model reflects a larger industry trend towards hybrid exchange services, catering to users demanding both liquidity and decentralised autonomy. MoonX's Solana and BNB Chain alignment positions BYDFi in direct competition with other hybrid and on‑chain innovators such as dYdX and PancakeSwap. Critics, however, caution that regulatory alignment alone doesn't guarantee market penetration. Local adoption may depend on factors like fiat on‑ramps, customer support in Korean, and local partnerships. BYDFi's prominent presence at SMW 2025 is a step towards building such ties, but the conversion of awareness into sustained user engagement will be the critical measure of success. Across the exhibition halls at COEX, conversations centred on Web3's real‑world applications—from decentralised identity to token‑based ecosystems. BYDFi's booth became a focal point for these discussions, reinforcing its positioning not just as a trading venue, but as a Web3 infrastructure provider.
Cision Canada
13-06-2025
- Business
- Cision Canada
BingX Listed as Approved VASP by Upbit Korea Under Travel Rule Framework
PANAMA CITY, /CNW/ -- BingX, a leading cryptocurrency exchange and Web3 AI company, announced it has been officially added by Upbit Korea to its list of approved virtual asset service providers (VASPs) under the Travel Rule framework. This integration enables seamless crypto transfer for users between BingX and Upbit Korea, marking a notable step forward in cross-platform compliance. "This integration enhances our user experience by enabling smoother and more secure transfers of crypto assets between the platforms," said Daniel Lai, Chief Business Officer at BingX. "We're continuously improving platform connectivity and service reliability to ensure that our users enjoy a more efficient trading journey, and this development also reinforces our commitment to responsible innovation in the digital asset space." Upbit Korea is a top-tier digital asset exchange headquartered in South Korea. This platform has been a dominant player in the South Korean market since its launch in 2017. With high trading volumes and a wide range of listed assets, Upbit Korea continues to play a significant role in shaping the local crypto ecosystem. About BingX Founded in 2018, BingX is a leading crypto exchange and Web3 AI company, serving a global community of over 20 million users. With a comprehensive suite of AI-powered products and services, including derivatives, spot trading, and copy trading, BingX caters to the evolving needs of users across all experience levels, from beginners to professionals. Committed to building a trustworthy and intelligent trading platform, BingX empowers users with innovative tools designed to enhance performance and confidence. In 2024, BingX proudly became the official crypto exchange partner of Chelsea Football Club, marking an exciting debut in the world of sports sponsorship.
The Star
19-05-2025
- Business
- The Star
Paris kidnap bid highlights crypto data security risks
LONDON: New regulations threaten the security of the personal data of cryptocurrency users and may expose them to "physical danger", the platform at the centre of last week's Paris kidnapping attempt has claimed. "A ticking time bomb," said Alexandre Stachtchenko, director of strategy at French platform Paymium, referring to the way information must now be collected during cryptocurrency transfers under EU rules. He did not directly link this to a kidnapping attempt on Tuesday which, according to a police source, targeted the daughter and grandson of Paymium's chief executive. "If there is a leak of one of these databases from which I can find out who has money and where they live, then the next day it is on the dark web, and the day after there is someone outside your home," Stachtchenko said. Data theft is commonplace. On Thursday, the leading cryptocurrency exchange in the United States, Coinbase, said criminals had bribed and duped their way into stealing digital assets from its users, then tried to blackmail the exchange to keep the crime quiet. Instead of paying up, Coinbase informed US regulators about the theft and made plans to spend between US$180mil (RM776mil) and US$400mil (RM1.7bil) to reimburse victims and handle the situation. Name and address Following the kidnapping attempt, Paymium issued a statement urging authorities to immediately reinforce the protection of companies within the sector, after other similar incidents this year. Founded in 2011 and presenting itself as a European pioneer of bitcoin trading, Paymium also cited "the highly dangerous aspects of certain financial regulations, either recently adopted or in the making". It added: "With the unprecedented organisation of massive and sometimes disproportionate collection of personal data, public authorities contribute to putting the physical safety of millions of cryptocurrency holders in France, and more widely in Europe, at risk." In its sights are rules which came into force at the end of 2024 and which extended the Travel Rule in place for traditional finance transfers to include crypto assets. The rules now require platforms to gather details about the beneficiary and, in return, transmit certain information about the customer to the receiving institution, including their name and postal address. Also to be disclosed is the "address" of a customer's cryptocurrency wallet, which shows details of their account and transactions, said Stachtchenko. Such sensitive data is sometimes exchanged and stored insecurely by certain players. Regulatory changes to tighten the rules on the crypto sector aim to "prevent the financial system from being used for corruption, money laundering, drug trafficking" among other criminal activities, said Sarah Compani, a lawyer specialising in digital assets. 'Nouveau riche' Data collection is carried out by parties including banks, insurance companies and crypto-service providers, which are "supervised" and subject to heavy "security obligations, particularly IT and cybersecurity", said William O'Rorke, a lawyer at cryptocurrency firm ORWL. In 2027, European anti-money laundering regulations will restrict the use of wallets and cryptocurrencies that allow the holders to remain anonymous. It follows a French law adopted last month to fight narcotrafficking, which targets anonymisation devices such as the cryptocurrency "mixers" used to render funds untraceable. There are many "legitimate interests" in having such tools however, said cybersecurity expert Renaud Lifchitz. He noted that they are sometimes used by journalists, or by activists opposed to an authoritarian regime which controls the traditional banking system. The debate is more "political" than "security-related", argued O'Rorke. The recent kidnappings and attempted kidnappings can be explained above all by a "somewhat nouveau riche" and "ill-prepared" cryptocurrency sector, he said. Since 2014, software developer Jameson Lopp has recorded 219 physical attacks targeting cryptocurrency users. – AFP
