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Global Crypto Oversight Tightens as FATF Targets Stablecoins and DeFi

Global Crypto Oversight Tightens as FATF Targets Stablecoins and DeFi

The Financial Action Task Force (FATF) reports that 73% of eligible jurisdictions have now adopted rules aligned with its crypto-focused Travel Rule, which requires platforms to track and share user transaction data.

While only The Bahamas is fully compliant, dozens of countries have moved closer to meeting FATF’s anti-money laundering standards.

Stablecoins and decentralized finance (DeFi) remain high-risk zones, with FATF citing growing illicit use—especially by North Korean-linked actors.

Despite rising scrutiny, enforcement remains weak: only four jurisdictions have registered DeFi entities, and most haven’t taken supervisory action.

Singapore and Hong Kong are moving quickly to tighten controls. Unlicensed exchanges in Singapore face shutdowns, while Hong Kong has advanced stablecoin legislation. Still, FATF warns that outright bans often fail to reduce crypto activity and instead erode oversight.

New FATF reports on stablecoins, DeFi, and offshore platforms are expected next year, likely shaping the next wave of global crypto regulation.

Author
Alexander Stefanov

Reporter at Coindoo

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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