The Financial Action Task Force (FATF) has published its Seventh Targeted Update on the Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers (VASPs).

The report assesses global progress in implementing Recommendation 15 and highlights that, while more jurisdictions have introduced legislation to regulate virtual assets, significant gaps remain in translating these frameworks into effective supervision and enforcement.

According to FATF, 83% of surveyed jurisdictions have now passed legislation implementing the Travel Rule, compared with 73% in 2025. However, further progress is required in several key areas, including:

• Effective licensing, registration and risk-based supervision of VASPs

• Full and practical implementation of the Travel Rule

• Identification and oversight of offshore and unlicensed VASPs

• Addressing risks associated with stablecoins, decentralised finance, unhosted wallets and cross-border virtual asset activities

• Strengthening enforcement and international cooperation

The update also highlights the increasing complexity of virtual asset-enabled crime, including fraud, cyber theft, sanctions evasion, money laundering and the growing misuse of artificial intelligence.

As virtual asset markets continue to evolve, governments, regulators, financial institutions and VASPs must work together to ensure that regulatory safeguards and AML/CFT controls keep pace with technological developments and emerging criminal methods.

Read the FATF press release and access the full report here:

https://www.fatf-gafi.org/en/news/targeted-updated-va-vasps-2026.html