Cryptocurrency regulations are increasingly aligning with global standards, with 73% of eligible jurisdictions implementing the Financial Action Task Force's (FATF) Travel Rule, which mandates crypto service providers to collect and share user transaction data. The latest FATF report highlights a convergence of regulatory approaches toward cryptocurrencies, especially focusing on stablecoins and decentralized finance (DeFi), which are increasingly associated with illicit activities. Of 138 jurisdictions, only one has achieved full compliance with the Travel Rule, while others are working toward more standardized licensing of virtual asset service providers (VASPs). The FATF's warnings against total prohibition of crypto emphasize that such measures can lead to reduced oversight. As stablecoins face scrutiny due to their role in illegal financing, jurisdictions are moving towards clearer regulatory frameworks. Despite many recognizing the need to regulate DeFi, few have successfully registered or supervised such platforms. The FATF's influence is emphasized by its role within the United Nations, where failing to comply with its standards can lead to economic isolation.

Source 🔗