The Financial Action Task Force (FATF) has initiated a targeted review of jurisdictions with high levels of virtual asset activity. This decision was finalized during the plenary session held in Paris from October 28 to 30, 2026, marking the first such meeting under the UK presidency.
The review focuses on jurisdictions hosting major virtual asset service providers (VASPs), including exchanges and custodians. The FATF aims to improve the implementation of Recommendation 15, which governs new technologies and virtual assets. The initiative targets hubs that collectively account for approximately 97% of the global virtual asset market.
As of April 2026, the FATF had evaluated 149 jurisdictions regarding VASP standards, finding 33 non-compliant and 64 partially compliant. While a July 2026 report indicated that 83% of surveyed jurisdictions had adopted Travel Rule legislation, the organization identified persistent gaps in risk-based supervision and licensing enforcement.
The FATF plans to provide technical assistance to help jurisdictions strengthen their compliance frameworks. Initial findings from the review are scheduled for release in June 2027, with additional results expected in October 2027. The organization also noted rising threats from industrial-scale fraud and the misuse of stablecoins.
