Islamabad:
The Task Force for Financial Action (FATF) has warned about the risk of virtual assets being used for money laundering, terrorist financing and other illegal activities and emphasized the need for urgent global action.
The Paris-based Global Financial Watchdog called on countries to take stronger actions to combat illegal funding in crypto assets and warned that gaps in regulation could have global consequences.
It said progress has been made since 2024 to regulate virtual assets, and many jurisdictions still have work to do.
From April 2025, only 40 out of 138 jurisdictions assessed were “largely compatible” with FATF’s crypto standards, up from 32 years earlier, FATF said in a statement. “With virtual assets inherently borderless, regulatory errors in a jurisdiction may have global consequences,” it added.
Fatf also raised concerns about the use of stableecoins, a type of cryptocurrency tied to Fiat currencies of “various illegal actors”, including North Korea, terrorist financiers and drug trafficking. It said most illegal crypto activity now involves stableecoins.
