General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
The Financial Action Task Force (FATF) is the international standard-setter for AML/CFT. In 2019, FATF updated Recommendation 15 (R.15) and its Interpretative Note (INR.15) to explicitly extend AML/CFT standards to virtual assets (VAs) and virtual asset service providers (VASPs). These standards — often called the "Travel Rule" for the Recommendation 16 component — require FATF member countries to ensure VASPs are licensed or registered, subject to AML/CFT supervision, and that VASPs collect and transmit originator and beneficiary information for VA transfers. FATF publishes annual targeted updates on global implementation. The sixth update (June 2025) found continued progress but noted that only 1 of 138 assessed jurisdictions is fully compliant. Travel Rule has been adopted or is in process in 99 jurisdictions. FATF also released Best Practices on Travel Rule Supervision in June 2025. The 2025 update highlighted increasing use of stablecoins in illicit activity and approximately USD 51 billion in illicit on-chain fraud/scam activity in 2024.
FATF standards apply to all FATF member countries (39 members) and the wider global network (200+ jurisdictions). The standards require member countries to: license or register VASPs; apply AML/CFT preventive measures (CDD, record-keeping, STR filing) to VASPs; supervise VASPs for AML/CFT compliance; apply the Travel Rule to VASP-to-VASP transfers; and take action against non-compliant VASPs. Countries that fail to implement are subject to mutual evaluations and potential grey/blacklisting.
Key requirements of FATF R.15/INR.15: (1) Countries must license or register VASPs before they can operate. (2) VASPs must be subject to AML/CFT supervision by a competent authority. (3) Travel Rule (Recommendation 16): VASPs must obtain, hold and transmit originator and beneficiary information for VA transfers at or above USD/EUR 1,000 threshold. (4) VASPs must apply customer due diligence (CDD) measures, maintain records, and file suspicious transaction reports. (5) Targeted financial sanctions must be implemented — VASPs must screen against UNSC sanctions lists. (6) Countries must apply FATF standards to DeFi where identifiable persons exercise control. (7) Countries must assess and mitigate ML/TF risks from stablecoins. (8) Countries must cooperate internationally on VASP regulation and enforcement.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.