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FATF urges faster crypto AML enforcement as stablecoin crime rises
The FATF said 83% of surveyed jurisdictions have adopted the Travel Rule into law, up from 73% a year earlier, but many still lack effective supervision and enforcement.
The Financial Action Task Force urged countries to speed up implementation of crypto anti-money laundering rules, warning that criminal networks increasingly use stablecoins and proprietary tokens to conduct illicit finance and try to evade asset freezes, Cointelegraph reports.
In its latest report published Thursday, the FATF said most identified onchain criminal activity now involves dollar-pegged cryptocurrencies, and it warned that criminals have also begun developing proprietary stablecoins intended to resist freezing and asset seizures.
The FATF tied its call to an annual review of how jurisdictions implement its AML standards for cryptocurrencies, noting progress on the Travel Rule but gaps in enforcement. It said 83% of surveyed jurisdictions have adopted the Travel Rule into law, up from 73% a year earlier, even as it found many have not translated legal frameworks into effective supervision and enforcement.
The FATF said the Travel Rule, which applies to cross-border payments and crypto transactions above a baseline threshold of $1,000 or 1,000 euros, is designed to improve information sharing about senders and receivers. The report also flagged ongoing challenges with offshore crypto service providers and assessing risks tied to DeFi, which it said could become a growing regulatory blind spot.