meta_id 3331691

On July 16, 2026, the Financial Action Task Force (FATF) published its seventh targeted update on the implementation of the FATF Standards on virtual assets and virtual asset service providers (VASPs). The update assesses progress and remaining gaps in implementing Recommendation 15 concerning new technologies across the FATF Global Network, following the extension of FATF’s AML/CTF Standards to virtual assets and VASPs. Since the 2025 targeted update, jurisdictions have advanced implementation of Recommendation 15 by conducting VA/VASP risk assessments, developing regulatory approaches, licensing or registering VASPs, implementing the Travel Rule, and taking supervisory and enforcement action. However, FATF highlights the need for further work on regulation, licensing and registration and that jurisdictions continue to face difficulties identifying persons or entities conducting VASP activities, with many yet to translate legal frameworks into effective supervision and enforcement in practice. FATF also noted that jurisdictions still report challenges with mitigating the risk of offshore VASPs and in assessing and mitigating risks associated with decentralised finance (DeFi) platforms, as regulated entities expand their engagement with DeFi platforms. The update highlights emerging and increasing illicit finance risks involving virtual assets, including the industrialisation of VA-enabled fraud by organised crime groups, misuse of stablecoins, risks from peer-to-peer transactions through unhosted wallets, offshore VASPs operating without effective regulatory oversight and ongoing challenges related to DeFi arrangements. In response, FATF sets out recommendations for public and private sectors to strengthen Recommendation 15 implementation, improve risk mitigation and enhance domestic, international and public-private cooperation, such as: Developing a clear and thorough understanding of the money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks posed by virtual assets and VASPs in order to allocate supervisory and enforcement resources proportionate to the national risk and context. Relying on a broad range of credible resources to conduct the virtual asset and VASP risk assessment. Substantially strengthen collaboration with foreign counterparts and relevant private-sector stakeholders to ensure that criminal activities linked to existing and emerging ML/TF/PF risks can be effectively disrupted. VASPs, including stablecoin issuers, should establish robust anti-money laundering (AML) and counter-terrorist financing (CTF) compliance frameworks and implement the Travel Rule in line with the requirements of Recommendation 15.