FATF: Stablecoin Crime Surging as 83% of Jurisdictions Adopt Travel Rule

According to its Thursday report, the Financial Action Task Force warned that criminals are increasingly exploiting stablecoins for illicit finance, with 83% of surveyed jurisdictions now having adopted the Travel Rule, up from 73% a year earlier.

The FATF Travel Rule requires financial institutions and virtual asset service providers to share sender and receiver information for cross-border crypto transactions above a $1,000 (or €1,000) threshold to combat money laundering and terrorist financing. Despite legal adoption, the FATF urged jurisdictions to accelerate implementation and enforcement of crypto AML standards, citing regulatory gaps that illicit actors continue to exploit.