FATF Says Crypto Travel Rule Adoption Is Rising, But Enforcement Still Lags
The FATF reports that 83% of surveyed jurisdictions have now passed laws to implement the crypto Travel Rule, up from 73% in 2025, but only 40% of those jurisdictions have taken supervisory or enforcement actions. The main problem is no longer legal adoption but weak enforcement. The Travel Rule requires virtual asset service providers to collect and share sender and receiver information for qualifying transfers. FATF says implementation remains uneven, creating weak links that illicit actors can exploit across borders. Key risk areas include scam centers, DPRK-linked cyber theft, unhosted wallets, DeFi, and stablecoins that are hard to freeze. DeFi remains especially difficult because it often lacks a clear intermediary to supervise. Stablecoins are also under scrutiny because freeze-resistant designs can limit law-enforcement intervention. The next phase of crypto regulation is likely to focus on supervision, penalties, and cross-border cooperation rather than just passing laws.
