The Financial Action Task Force has published its seventh targeted update on implementation of Recommendation 15 for virtual assets and virtual asset service providers, finding that jurisdictions have continued to make progress since 2025 but that global compliance remains uneven. The report points to further movement on risk assessments, regulatory approaches, VASP licensing or registration, Travel Rule legislation, and supervisory and enforcement activity. However, it says significant gaps remain in turning risk assessments into concrete mitigation measures, making licensing and registration frameworks work in practice, identifying entities carrying out VASP activity, and ensuring effective risk-based supervision and enforcement. The update shows modest improvement in assessed compliance, with 34% of 149 assessed jurisdictions rated largely compliant in 2026, up from 29% in 2025, while only one jurisdiction remains fully compliant. In the 2026 survey, 86% of responding jurisdictions reported having conducted a VA or VASP risk assessment, 89% said they had decided how to regulate the sector, and 83% of respondents reported having passed Travel Rule legislation. Even so, operational follow-through remains weak. Among respondents that do not prohibit VASPs, 73% require licensing or registration, but only 58% reported having actually licensed or registered a VASP. For the Travel Rule, 60% of jurisdictions that have enacted legislation said they have not yet issued findings or directives or taken supervisory or enforcement action focused on compliance. The report also highlights rising risks from industrialised virtual asset-enabled fraud, misuse of stablecoins, peer-to-peer transfers through unhosted wallets, offshore VASPs and DeFi, where implementation remains particularly limited. The report sets out priority recommendations for authorities and firms, including faster implementation of Recommendation 15 in jurisdictions with materially important VASP activity, stronger supervisory frameworks, more effective action against unlicensed activity, and greater domestic, international and public-private cooperation to trace, freeze and seize illicit assets. FATF said it will continue to monitor implementation and emerging risks in the virtual asset ecosystem through its assessment, risk analysis and capacity-building work.
Financial Action Task Force2026-07-16
Financial Action Task Force reports modest progress but persistent gaps in virtual asset and VASP standards implementation
The Financial Action Task Force's latest update says jurisdictions have made modest progress in implementing its virtual asset and VASP standards, but major gaps remain in practical licensing, risk-based supervision and enforcement. Travel Rule legislation has expanded to 83% of surveyed jurisdictions, yet supervisory and enforcement experience remains limited. FATF also flagged growing risks involving fraud, stablecoins, unhosted wallets, offshore VASPs and DeFi.