💥 FATF Raises Red Flag: $51 Billion in Dirty Crypto Sparks Global Concern. By ChainFabricNews

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Cryptocurrency has come a long way—from underground forums to the world’s biggest investment firms. But with rapid growth comes new risks, and now the world’s top financial watchdog is sounding the alarm.

On June 26, 2025, the Financial Action Task Force (FATF), an international group fighting financial crime, warned that crypto is becoming a playground for criminals—and regulators are falling behind. According to their latest report, over $51 billion in cryptocurrency was linked to illegal activity in 2024 alone.

🌐 Not Just Dark Web Stuff—Stablecoins Are the New Favorite

Surprisingly, it’s not obscure tokens that criminals are using. It’s stablecoins—digital currencies pegged to real-world money like the US dollar. FATF says these coins now make up the majority of crypto crimes. Why? Because they’re fast, cheap to move, and less volatile.

From scams and drug trades to state-sponsored hacks, stablecoins are playing a central role. One big concern is North Korea, which allegedly uses stolen crypto to fund its weapons programs. The infamous ByBit hack earlier this year, where $1.5 billion was stolen, has been linked to the country—although they deny it.

🔍 Only 40 Countries Are Doing Enough

Out of 138 countries FATF reviewed, only 40 were rated "largely compliant" with crypto regulations. That means most of the world still doesn’t have strong enough rules to stop money laundering or terrorism financing through crypto.

Even where laws exist, enforcement is a problem. For example, a rule called the “Travel Rule” requires crypto companies to share sender and receiver information. About 73% of countries say they’ve adopted it, but only 40% are enforcing it properly.

😟 Why This Should Matter to Everyone

This isn’t just a problem for governments or crypto exchanges. It affects regular users too. Criminals moving billions through crypto can bring more regulations, higher fees, and less privacy for honest traders.

Plus, if regulators don’t act, it could hurt the reputation of the entire industry. This might slow down innovation or discourage large institutions from investing, which many believe is key to crypto’s long-term success.

📢 What FATF Wants to See Happen

FATF isn’t just raising problems—they’re offering solutions:

  • Stronger international rules for all crypto companies.

  • Full implementation of the Travel Rule across the globe.

  • More attention to how stablecoins are issued and used.

  • Better cross-border cooperation so criminals can’t hide behind weak jurisdictions.

🚨 Final Thoughts

Crypto has opened up amazing opportunities—but it’s also created new loopholes for crime. If countries don’t work together now, the dark side of crypto could grow even bigger. But with the right actions, it’s possible to keep digital currencies safe, legal, and beneficial for everyone.

As crypto investors and users, staying informed—and pushing for smart regulation—might be our best bet to protect the future of this exciting technology.

 

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