Crypto Regulation Crisis: FATF Warns of Global Systemic Risks

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🚨 Global Crypto Crime Wave? FATF Issues Major Warning!

🚨 A new report from the Financial Action Task Force (FATF) reveals shocking gaps in global crypto regulation. Out of 138 countries, only 40 are compliant, leaving billions at risk.

In 2024 alone, illicit wallets took in over $51 BILLION, with stablecoins increasingly tied to hacks, terrorism financing, and global crime networks.
In this video, we cover:

🌍 Why FATF says crypto’s borderless nature poses global risks
đź’¸ The record-breaking $1.5B Bybit hack linked to North Korea
⚠️ Why stablecoins, once seen as safe, are now a prime tool for illicit finance
🏦 How regulators warn crypto’s link to traditional finance could trigger systemic risks The FATF’s 2025 warning is clear: without stronger compliance, the entire global financial system could be at risk.

FATF Report Key Findings

  • Global compliance is low: As of April 2025, FATF found only 40 out of 138 jurisdictions were “largely compliant” with crypto regulations, up just slightly from the prior year.

  • Crypto crime volume: In 2024, illicit wallets received nearly $51 billion, with estimates from Chainalysis and Elliptic supporting figures in this range.

  • Stablecoins and crime: The FATF’s June 2025 warning called out stablecoins as the primary vehicle for illicit on-chain activity, including hacks, terrorism financing, and organized crime—and noted they’re now preferred over bitcoin by criminals due to their speed and liquidity.

  • North Korean hacking: The Bybit hack in February 2025 resulted in a $1.5 billion theft; it was linked to North Korea’s Lazarus Group and elevated fears about crypto being used to fund rogue states.

  • Systemic risks: FATF and other G20 regulators are increasingly alarmed about crypto’s integration with traditional finance and the potential for systemic risk if regulation doesn’t improve.

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