PARIS—Fewer than 30% of jurisdictions around the globe had started regulating the crypto sector as of June 2023, according to Financial Action Task Force (FATF) President T. Raja Kumar.
That low level of attention warrants "call to action," said Kumar. The statistic was detailed in a progress report recently made public and shared with CoinDesk, which explored how dozens of jurisdictions have adhered to the FATF's recommendations, according to CoinDesk.
The report is titled "Status of Implementation of Recommendation 15 by FATF Members and Jurisdictions with Materially Important VASP Activity."
The recommendation had urged jurisdictions to get a better handle on money-laundering and terrorist-financing risks posed by crypto, to license or register virtual asset service providers (VASPs), and to conduct reviews of their business practices, products and technology, CoinDesk explained.
Not Mandatory
The FATF recommendations are not mandatory, but non-abiding jurisdictions could face global isolation through drops in their credibility ratings and other actions, such as the repercussions of being put on the FATF's watchlist, CoinDesk said.
“The crypto sector has faced a credibility and safety crisis as it's been beset by hacks, many of which are linked to North Korea, sanctions from the U.S. and the U.N., and allegations of being a conduit for terrorist financing, including for those aiding Hamas and ISIS,” CoinDesk added.