FATF Report Says Virtual Asset Regulation Has Advanced, but Gaps Remain

The Financial Action Task Force said regulation of virtual assets and virtual asset service providers continued to advance globally through 2026. According to PANews, the report said 86% of jurisdictions have completed risk assessments, 83% have enacted the Travel Rule, and the share of jurisdictions rated broadly compliant with Recommendation 15 rose to 34%. The report said enforcement, VASP identification, offshore VASP oversight, and DeFi regulation still show clear deficiencies. It also flagged emerging risks including stablecoin abuse, peer-to-peer transactions through non-custodial wallets, offshore VASPs, DeFi, and AI-assisted scams, and called for stronger international cooperation, risk-based supervision, and public-private collaboration.