The global watchdog said 86% of jurisdictions have completed risk assessments and 34% are now largely compliant with Recommendation 15, but enforcement, offshore oversight and DeFi remain weak points.
The Financial Action Task Force said in its seventh targeted update that global oversight of virtual assets and virtual asset service providers has progressed further by 2026, with 86% of jurisdictions completing risk assessments, 83% legislating the Travel Rule, and the share rated largely compliant with Recommendation 15 rising to 34%. The report said important weaknesses remain in enforcement, identifying VASPs, oversight of offshore VASPs and decentralized finance. FATF also warned that risks continue to build around stablecoin misuse, peer-to-peer activity through non-custodial wallets, offshore VASPs, DeFi and AI-enabled fraud. Recommendation 15 is the FATF standard covering regulation and supervision of crypto firms and the management of anti-money laundering and counter-terrorist financing risks.