Seventh Targeted Update on Implementation of the FATF Standards on Virtual Assets/VASPs

Paris, 16 July 2026 - This targeted update assesses progress and remaining gaps in the implementation of Recommendation 15 (R.15) across the FATF Global Network, following the extension of the FATF’s AML/CFT Standards to virtual assets (VAs) and virtual asset service providers (VASPs). In line with the FATF Virtual Assets Contact Group (VACG) Roadmap to strengthen implementation of R.15, the report provides an updated overview of measures taken by FATF and FSRB jurisdictions, including jurisdictions with materially important VASP activity, to regulate and supervise the VA/VASP sector.

Since the 2025 Targeted Update, jurisdictions have continued to make progress in implementing R.15, including by conducting VA/VASP risk assessments, developing regulatory approaches, licensing or registering VASPs, implementing the Travel Rule, and advancing supervisory and enforcement action. However, significant gaps remain in translating risk assessments into effective mitigation measures, operationalising licensing or registration frameworks in practice, identifying persons or entities conducting VASP activities, and ensuring effective risk-based supervision and enforcement.

The report also highlights emerging and increasing risks involving VAs, including the growing industrialisation of VA-enabled fraud by organised crime groups, the misuse of stablecoins, risks arising from P2P transactions through unhosted wallets, offshore VASPs operating outside effective regulatory and supervisory oversight, and continuing challenges related to DeFi arrangements. In response, the report sets out recommendations for the public and private sectors to strengthen R.15 implementation, improve risk mitigation, and enhance domestic, international, and public-private co-operation.