On 26 June 2025, the Financial Action Task Force (FATF) released its sixth targeted update on global efforts to combat money laundering and terrorist financing in relation to virtual assets (VAs) and virtual asset service providers (VASPs). While some jurisdictions have advanced in implementing FATF Recommendation 15, significant gaps remain.

Key issues include ongoing difficulties in licensing VASPs, identifying those conducting VASP activities—especially offshore—and inconsistent application of the Travel Rule, despite 99 jurisdictions now having adopted or drafted relevant legislation.

To support global implementation of the Travel Rule, the FATF also published a complementary report on Best Practices for Travel Rule Supervision, offering examples of effective approaches that jurisdictions can adopt when developing their supervisory frameworks.

The update further highlights serious emerging threats, including increasing use of stablecoins by illicit actors such as DPRK-affiliated groups, and a dramatic rise in fraud and scams involving virtual assets. The FATF calls for stronger international cooperation, improved supervision, and urgent action to close regulatory gaps.

The full report and best practices document are available on the FATF website here