In a recent report, the Financial Action Task Force (FATF), a global authority on financial crime, has called for countries to augment their efforts in regulating crypto assets to prevent illicit financial activities. The watchdog highlighted gaps in regulation that may lead to worldwide repercussions if not addressed.

As reported, only 40 of 138 assessed jurisdictions were largely compliant with FATF's crypto standards as of April 2025, marking a slight improvement from the previous year. The FATF emphasized the inherent borderless nature of virtual assets and how regulatory failures in one jurisdiction could have severe global consequences.

The report also noted that stablecoins have become a focal point for illicit activities by actors like North Korea and terrorist financiers, exacerbating risks to the financial system. Recent developments have shown that illicit crypto activities, including a major theft by North Korean operatives, are increasing concerns among financial authorities.

(With inputs from agencies.)