TechFlow news, July 20: According to the latest report released by the Financial Action Task Force (FATF) on July 16, FATF conducted the seventh targeted assessment on the implementation of Recommendation 15 (R.15) across global jurisdictions.
The report noted that since the last update in 2025, countries have continued to advance in the regulation of Virtual Assets (VA) and Virtual Asset Service Providers (VASP), including conducting risk assessments, improving licensing and registration frameworks, implementing the Travel Rule, and strengthening enforcement actions. However, the report also pointed out significant gaps still exist, mainly reflected in: difficulties in effectively translating risk assessment results into mitigation measures, insufficient implementation of licensing and registration frameworks, challenges in identifying entities engaged in VASP activities, and insufficient effectiveness of risk-based supervision and enforcement.
Regarding emerging risks, the report focused on the following areas: the intensified "industrialization" trend of organized crime groups using virtual assets to commit fraud, increased risk of stablecoin abuse, risks associated with peer-to-peer (P2P) transactions via non-custodial wallets, offshore VASPs operating outside regulatory oversight, and ongoing challenges in the DeFi sector.
FATF called on both public and private sectors to jointly strengthen the implementation of R.15, enhance risk mitigation capabilities, and deepen domestic, international, and public-private cooperation mechanisms.
