What FATF’s 7th Crypto Compliance Report Card Means: Enforcement Must Catch Up With Legislation

The report reviews the FATF's 7th Targeted Update on virtual assets and VASPs, concluding that while many jurisdictions have adopted laws (Travel Rule, VASP licensing, stablecoin tracking), enforcement lags; it flags major emerging risks — freeze‑resistant stablecoins, AI‑amplified fraud and impersonation, DPRK and terrorist financing convergence, DeFi and P2P monitoring gaps — and urges jurisdictions and private firms to operationalise on‑chain analytics, supervisory inspections, and public‑private partnerships to trace, freeze, and seize illicit assets.