PARIS, June 26 (Reuters) – The Financial Conduct Task Force (FATF), a global financial crime watchdog, called on Thursday to take strong action to combat illegal cryptocurrency finances, warning that regulatory gaps will have a global impact.
The Paris-based Watchdog said that while progress has been made in regulating virtual assets since 2024, many jurisdictions still have work to do to combat risk.
As of April 2025, only 40 of the 138 jurisdictions assessed were “primarily compliant” with FATF’s cryptographic standards.
“In virtual assets, failure to regulate in one jurisdiction can have global consequences, as there are essentially no boundaries,” the FATF said in a statement.
According to Blockchain Analytics Firm Chainalysis, the illegal crypto wallet address could have received up to $51 billion in 2024.
The FATF said countries continue to face difficulties in identifying the people behind virtual asset transactions.
The report is the latest indication that concerns are growing among financial authorities regarding crypto-related risks to the financial system.
In April, EU Securities Watchdog warned that the growing crypto sector could pose risk to broader financial stability, especially as its connections deepen with traditional markets.
The FATF also raised concerns about the use of Stubcoin, a kind of cryptocurrency pinned in Fiat currency by “various illegal actors,” including North Korea, terrorist investors and drug traffickers. It says that most illegal cryptographic activities now contain stubcoins.
The FBI says North Korea was responsible for the theft of approximately $1.5 billion worth of virtual assets from Crypto Exchange Bybit, the biggest crypto theft in history. North Korea routinely denied its involvement in cyber hacking and crypto robbery.
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