Criminals are using gaps in global regulations to move billions of illicit dollars through the cryptocurrency industry. That warning comes from the Financial Action Task Force (FATF) in its latest report on virtual assets and money laundering.
The Paris-based intergovernmental body states that crypto-enabled crime has grown more complex and interconnected. Countries and their financial institutions face significant, ongoing challenges in detecting money-laundering flows from fraud networks and scam compounds.
While compliance with FATF standards has improved slightly, with 51 of 149 assessed jurisdictions now largely compliant, significant gaps remain. The report specifically notes a troubling increase in the illicit use of stablecoins. Some criminal networks are even developing their own stablecoins designed to resist being frozen or seized by authorities.