The Financial Action Task Force , a global authority on financial crime, has urged countries to intensify efforts to regulate crypto assets, citing persistent risks and regulatory gaps. In its latest report released on June 26, 2025, FATF highlighted that only 40 out of 138 jurisdictions evaluated were "largely compliant" with its crypto standards as of April 2025, showing limited progress since 2024. The watchdog emphasized the borderless nature of virtual assets, warning that regulatory shortcomings in one region could have worldwide implications.
Notably, illicit crypto wallet addresses reportedly received as much as $51 billion in 2024, with stablecoins—the type of cryptocurrency pegged to fiat currencies—being increasingly exploited by criminal actors including North Korea, terrorist groups, and drug traffickers. The FBI has attributed the largest-ever crypto theft—worth $1.5 billion from the ByBit exchange in February 2025—to North Korea, although the country denies involvement.
In response to these concerns, the crypto industry is navigating a complex political landscape involving over $100 million in lobbying efforts aimed at shaping U.S. regulatory policy. Central to the debate are three key legislative components: a Senate-passed stablecoin bill , a nascent market structure bill, and the SEC's plan to act unilaterally if legislation stalls. Industry leaders are divided on whether to push Congress for both bills simultaneously, risking neither passing, or to pursue the stablecoin bill alone first. Despite uncertainties, optimism prevails that Democrats will support crypto going forward.
In regulatory developments, California reached a $300,000 settlement with Bitcoin ATM operator Coinme over non-compliance issues. Meanwhile, the Federal Home Finance Administration directed Fannie Mae and Freddie Mac to explore including digital assets in mortgage applications—a change that could alter how wealth is assessed for home loans. Additionally, other industry updates include Senate discussions on crypto market reforms, new crypto treasury strategies, and rising tensions involving crypto-funded espionage incidents. These developments signal a dynamic and increasingly mainstreaming environment for digital assets in both politics and finance.
Kraken, a major cryptocurrency exchange, has launched Krak, a new peer-to-peer payments app that allows users to send and receive both cryptocurrencies and fiat across over 100 countries. This strategic move marks Kraken's expansion beyond traditional crypto trading into digital payments, positioning it against established players like PayPal, Venmo, and CashApp. Users of Krak will get dedicated spend accounts and support for transactions in over 300 assets, including local currencies and cryptocurrencies. Crypto payments will operate via blockchain, while fiat transactions occur within Kraken’s internal system, bypassing external bank infrastructures. Co-CEO Arjun Sethi emphasized that Kraken's pre-existing global network and licensing infrastructure facilitated this swift rollout. Looking ahead, Kraken aims to expand Krak’s services with physical and virtual payment cards and advance pay services such as loans, further enhancing its financial ecosystem.
States across the U.S. are intensifying regulation on cryptocurrency ATMs in response to a surge in fraud, particularly targeting seniors. These kiosks, used to convert cash to crypto and vice versa, are increasingly exploited by scammers due to the irreversible nature of crypto transactions. Illinois, Rhode Island, Vermont, Nebraska, and Arizona have enacted laws mandating stricter oversight, daily limits, fraud warnings, and licensing systems. Cities like Spokane have gone as far as banning crypto ATMs. The FTC and FBI have reported large increases in fraud losses related to these kiosks, prompting support from advocacy groups like AARP. Meanwhile, Bitcoin remained relatively stable amid geopolitical tensions involving Iran, and the Federal Reserve removed “reputational risk” from its bank assessment guidelines, signaling a retreat from broad regulatory discretion criticized during "Operation Chokepoint 2.0". In other crypto news, payment giant Fiserv announced its entry into the stablecoin space with FIUSD, built on the Solana blockchain and interoperable with PayPal’s PYUSD. The company aims to enhance digital payment capabilities for clients without profiting from yield, focusing instead on unlocking commerce through stablecoins. Mastercard has also committed to using FIUSD.
Cryptocurrency-related crimes are increasingly spilling into the real world with cases involving kidnapping, torture, and violent robberies being reported across the globe. In New York, two American investors were arrested for allegedly torturing an Italian man to obtain his Bitcoin password. In Connecticut, a couple was assaulted during a botched ransom attempt tied to their son’s alleged crypto theft. Similar incidents in France include a crypto entrepreneur’s father having a finger severed during a kidnapping and other high-profile figures targeted for ransom. Authorities link these crimes to the surging value of cryptocurrency and its limited regulation, enabling anonymous and hard-to-trace transactions. The FBI reported a record $16.6 billion in internet crime losses in 2024, with over $6.5 billion involving cryptocurrency. Experts suggest the influx of violent tactics is due to both the massive financial stakes and the ease of identifying wealthy crypto holders via social media. As crypto enters the mainstream, experts warn that criminals are adapting traditional robbery methods to target digital assets, calling for evolving public awareness and law enforcement strategies.
