The Financial Action Task Force (FATF) reports that 73% of eligible jurisdictions have implemented laws for the Travel Rule, requiring crypto service providers to collect and share users’ transaction data akin to traditional finance. The FATF highlighted stablecoins and decentralized finance (DeFi) as areas of major concern due to their association with illicit financing. The organization plans to publish targeted papers on these topics, indicating future regulatory directions. Currently, the Bahamas is the only jurisdiction fully compliant with FATF's Recommendation 15, while many others have been assessed as largely compliant. The landscape of crypto regulation is shifting, with jurisdictions deciding on approaches to either permit or prohibit crypto activities. Notably, stablecoins, especially USDT, have faced scrutiny for their role in facilitating illicit activities, including connections to North Korean actors. The FATF emphasizes that jurisdictions opting for prohibitions risk losing oversight and control, while clear adherence to FATF standards is crucial for participating in global finance.

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