Over the past few years, cryptocurrency has moved from the fringes of finance to the heart of global attention. With this rise, however, comes growing concern from international bodies about how these digital assets are being used—and misused.
One organization that’s turning up the heat is the Financial Action Task Force (FATF), a global watchdog focused on preventing money laundering and financial crime. In a recent update, FATF urged governments around the world to step up their efforts to fight illegal activity in the crypto space.
While progress has been made in developing regulations for digital assets, a significant number of countries are still falling behind. According to FATF, as of April 2025, only 40 out of 138 jurisdictions were meeting its standards on crypto regulations. That’s not even a third. And the risks of this slow progress? They’re potentially global.
Why Crypto Needs Tighter Oversight
Cryptocurrencies are decentralized by design. That means they can be sent, received, and traded across borders without going through traditional banking systems. While this offers freedom and flexibility, it also opens the door to criminal use if there are no checks in place.
FATF pointed out that when one country fails to regulate crypto properly, it can cause issues that ripple across the globe. The organization warns that digital assets are becoming a favorite tool for criminal networks and even hostile governments.
One alarming stat from the watchdog’s report: illicit crypto wallets may have received up to $51 billion in 2024. That’s a jaw-dropping figure—and it doesn’t just stay within one country’s borders.
The Problem with Anonymity in Crypto
One of the biggest challenges authorities face is figuring out who’s behind crypto transactions. Unlike traditional bank accounts that are linked to verified identities, many crypto wallets remain anonymous or difficult to trace. This anonymity is part of what makes crypto attractive to criminals.
FATF says that despite years of work, most countries still struggle to enforce transparency rules in the crypto sector. The result? Criminals continue to exploit these loopholes to move and hide large sums of money with relative ease.
Stablecoins: The New Front in Illicit Crypto Use
FATF’s recent statement also shines a spotlight on stablecoins. These are a type of cryptocurrency that’s typically tied to the value of a fiat currency like the US dollar. Their value doesn’t fluctuate as wildly as Bitcoin or Ethereum, which makes them easier to use in everyday transactions.
But that also makes them appealing to the wrong crowd.
According to FATF, most illegal activity involving crypto now revolves around stablecoins. They’ve been linked to criminal groups, terrorist organizations, and even rogue states like North Korea.
In fact, the FBI believes North Korea was behind a $1.5 billion crypto theft from the ByBit exchange in February 2025. It’s considered the largest cryptocurrency theft ever recorded. North Korea, as usual, denies any involvement—but the evidence continues to pile up.
These kinds of attacks show just how vulnerable the crypto ecosystem can be when bad actors exploit weak regulatory environments.
Why Stablecoins Are a Target
Stablecoins are especially attractive to criminals because they combine the speed of crypto with the perceived reliability of fiat currencies. They can be moved quickly, stored without banks, and cashed out in different parts of the world with minimal oversight.
This has made them a tool of choice for money laundering, drug trafficking, and even financing terrorism. FATF’s warning is clear: without strong global cooperation, these digital assets will continue to be misused.
The Ripple Effect on the Global Financial System
It’s not just watchdogs like FATF that are worried. Other major financial authorities have echoed similar warnings.
In April, the EU’s securities regulator raised red flags about the growing connections between crypto markets and traditional finance. As these two systems become more intertwined, there’s increasing risk that problems in one area could spill over into the other.
For instance, a massive fraud or failure in the crypto sector could trigger panic among investors, destabilize markets, and even impact banks or financial institutions with exposure to digital assets.
The message is simple: crypto is no longer isolated. Its risks are becoming everyone’s problem.
Final Thoughts: Why This Matters More Than Ever
The crypto revolution is here to stay. But as with any powerful tool, its impact depends on how it’s used—and how well it’s managed.
Organizations like FATF are pushing for faster, stronger action to close the gaps in crypto regulations. The goal isn’t to stop innovation, but to ensure that digital assets aren’t turned into a safe haven for criminal activity.
Whether you’re a casual investor, a startup founder, or just someone curious about the future of finance, this moment matters. The decisions being made today will shape the safety, trust, and stability of crypto for years to come.
So as countries around the world work to get on the same page, it’s clear: the time to act is now.
Don’t trade all the time, trade forex only at the confirmed trade setups
Get more confirmed trade signals at premium or supreme – Click here to get more signals, 2200%, 800% growth in Real Live USD trading account of our users – click here to see , or If you want to get FREE Trial signals, You can Join FREE Signals Now!
