FATF calls for tougher crypto AML action

• The Financial Action Task Force urged countries to strengthen crypto anti-money laundering enforcement.
• The watchdog warned stablecoins are increasingly being used in illicit transactions.
• It called for more consistent implementation of global crypto regulations.

The Financial Action Task Force (FATF) has urged governments to strengthen anti-money laundering (AML) enforcement for cryptocurrencies, warning that criminals are making greater use of stablecoins.

The global watchdog said many jurisdictions have yet to fully implement its recommendations for regulating virtual asset service providers.

FATF said inconsistent enforcement is creating opportunities for illicit finance and allowing cross-border crypto crime to persist.

The organisation urged regulators to improve supervision, licensing and information sharing while ensuring crypto businesses comply with AML and counter-terrorism financing rules.

FATF also highlighted the growing use of stablecoins in illegal transactions, saying authorities need to adapt oversight as digital asset markets evolve.

The watchdog has repeatedly encouraged countries to adopt the "Travel Rule", which requires crypto service providers to collect and share transaction information.

The latest report reflects increasing international efforts to strengthen oversight of the digital asset sector while supporting legitimate innovation.