Islamabad:
The Finante Action Task Group (FATF) warned about the risks of virtual assets being used for money laundering, terror financing and other illicit activities, and emphasized the need for urgent global action.
The Global Financial Control Agency based in Paris asked countries to take stronger measures to combat illegal finances in cryptography assets, warning that the gaps in regulation could have global repercussions.
He said that progress has been made since 2024 when regulating virtual assets, many jurisdictions still have work to be done.
As of April 2025, only 40 of 138 jurisdictions evaluated were “largely compatible” with Criptographic Fatf standards, compared to 32 of the year before, Fatf said in a statement. “With virtual assets inherently without borders, regulatory failures in a jurisdiction can have global consequences,” he added.
Fatf also raised concerns about the use of stable, a type of cryptocurrencies linked to fiduciary currencies, for “several illicit actors”, including North Korea, terrorist and drug traffickers. He said that the majority of illicit cryptographic activity now involves Stablcoins.
