The Financial Action Task Force (FATF), the global watchdog on financial crimes, has intensified its calls for governments worldwide to step up crypto oversight, citing the rising risk of illicit finance. The organisation’s latest appeal highlights how cryptocurrencies’ borderless nature can turn weak regulation in one country into a global threat.
“Borderless nature of crypto leads to regulatory failure in one jurisdiction to spread across the globe,” the FATF warned, underscoring the urgency of coordinated action. While 40 out of 138 jurisdictions are now compliant with FATF’s crypto standards up from 32 last year there’s still a long road ahead.
A key driver behind this warning is the surge in criminal crypto activity. According to blockchain analytics firm Chainalysis, illicit wallet addresses received $51 billion, with $40.9 billion going directly to wallets committing crimes like hacking, extortion, and scams.
Growing Tension Between Oversight and Progress
This isn’t the FATF’s first red flag. In April, the group issued an earlier warning, expressing concerns that unchecked cryptocurrency growth could threaten global financial stability. At the same time, regulators in Europe and the United States have struggled to find a balance between encouraging innovation and preventing misuse.
“EU financial markets are, as we speak, under severe strain coming from the broader political and geopolitical developments,” European Securities and Markets Authority (ESMA) Executive Director Natasha Cazenave told the European Parliament in April, highlighting the delicate balance regulators face.
Regulatory Efforts Gaining Steam
Among efforts to tackle crypto crimes, the FATF’s Recommendation 16 has introduced a so-called “Travel Rule” mandating that virtual asset service providers (VASPs) collect and share sender and recipient information. The rule, expected to be enforced by 2030, is gaining traction: Turkey has already implemented related anti-money laundering measures, including delays of up to 72 hours for non-compliant crypto withdrawals.
Meanwhile, in the US, agencies like Freddie Mac and Fannie Mae are beginning to consider borrowers’ crypto holdings when assessing risk, marking a significant step towards integrating digital assets into traditional finance.
Yet, progress remains uneven. The US Congress recently revoked a Biden-era rule requiring DeFi platforms to report detailed customer transaction data to the IRS by 2027. At the same time, deregulation efforts during the Trump administration led the Securities and Exchange Commission (SEC) to pause major enforcement actions against major crypto firms such as Ripple, Coinbase, and Binance.
Legislation like the FIT21 Act and the Digital Asset Market Act, which sought to split oversight responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC), has drawn criticism for potentially creating regulatory gaps. Even the GENIUS Act, intended to formalise stablecoin oversight, has been blasted for being too lenient and embedding conflict-of-interest exemptions.
Opportunities for Strategic Investment
Despite the regulatory uncertainty, these developments could pave the way for stronger, customer-focused crypto regulations that reward transparent, secure projects. Analysts suggest that the current environment favours proven assets with clear utility or viral potential.
BTC Bull, a meme coin riding on Bitcoin’s momentum, has emerged as a standout. Designed to mirror Bitcoin’s speculative nature, BTC Bull rewards holders with Bitcoin airdrops as BTC price milestones are hit. Its straightforward model and honest image have caught investor attention, with CryptoNews calling it a “super 100x presale.”
Another contender, SUBBD, offers utility by powering a content creation platform similar to OnlyFans but enhanced with AI tools. Creators can craft and manage content with advanced AI features, while fans engage in innovative ways. SUBBD also promises a fixed 20% staking reward, which, paired with its growing community, makes it an appealing choice.
Meanwhile, Snorter, a Telegram-based Solana trading bot, caters to investors seeking automated trading on Solana tokens. With built-in protections against MEV, honeypots, and rugpulls, Snorter offers a layer of security while leveraging viral marketing through quirky aardvark-themed memes, increasing its odds of explosive growth upon launch.
A Turning Point for Crypto
As FATF pushes governments towards stronger oversight, the crypto landscape is poised for transformation. While tighter regulations may end the era of unbridled freedom in crypto markets, they also signal a shift towards greater legitimacy and investor protection.
In this evolving environment, assets like BTC Bull, SUBBD, and Snorter stand out for their innovative models, security-conscious designs, and potential to thrive under clearer regulatory frameworks. For investors, these projects represent not just speculative opportunities but also a bet on the future of a safer, more mature crypto market.
