FATF Warns Crypto Enforcement Is Falling Behind as AI Crime Rises
FATF warns crypto laws are advancing globally, but enforcement is lagging as AI-driven crime and freeze-resistant stablecoins rise.
The Financial Action Task Force has released its seventh compliance report card on virtual assets. Published July 16, the update tracks how well nations have adopted the FATF’s R.15 recommendations since they launched over seven years ago.
According to a report by Chainalysis, global crypto laws are advancing steadily, but enforcement has not kept pace. Criminal networks are now leaning on artificial intelligence and issuing their own “freeze-resistant” stablecoins to dodge existing controls.
The message from the watchdog is blunt: paper compliance no longer cuts it.
Legislation Grows While Enforcement Stalls
Progress on paper looks strong. Chainalysis reports that 86% of the 147 surveyed jurisdictions have completed virtual asset risk assessments, up from 76% in 2025.
Travel Rule legislation now covers 83% of jurisdictions, compared to 73% a year earlier. Jurisdictions rated “Largely Compliant” climbed from 29% to 34%.
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