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FATF releases the 7th update to the implementation guidance for virtual asset/VASP standards: global regulatory push underway, but there are still clear gaps in enforcement and DeFi oversight

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PANews July 20 news: The international anti-money-laundering standards-setter FATF (Financial Action Task Force) has recently released a report stating that, by 2026, global oversight of virtual assets (VA) and virtual asset service providers (VASP) will continue to advance. 86% of jurisdictions have completed risk assessments, 83% have enacted the Travel Rule into law, and the proportion of R.15 “largely compliant” has risen to 34%. However, there are still clear shortcomings in enforcement, VASP identification, offshore VASP supervision, and DeFi supervision. The report also warns about emerging risks such as stablecoin misuse, peer-to-peer transactions using non-custodial wallets, offshore VASPs, DeFi, and AI-assisted scams, and calls for strengthening international cooperation, risk-based regulation, and public-private collaboration.
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