FATF Report Finds Fewer Than 30% of Jurisdictions Regulating Crypto Sector as of June 2023

The President of the Financial Action Task Force (FATF), T. Raja Kumar, has urged countries to take crypto regulation seriously, as less than 30% of jurisdictions worldwide have begun regulating the sector. The FATF's report highlights that a lack of regulation creates significant opportunities for criminals and terrorists to exploit. The report recommends that jurisdictions license or register virtual asset service providers (VASPs) and conduct reviews of their business practices, products, and technology to better manage money-laundering and terrorist-financing risks posed by crypto. While the FATF's recommendations are not mandatory, non-compliant jurisdictions could face global isolation through drops in their credibility ratings and other actions. The FATF has conducted a risk assessment on Virtual Asset Service Providers (VASPs) but has not yet completed the other seven relevant criteria.