MONEYVAL’s Typologies Report on Virtual Assets and VASPs warns that weak enforcement, uneven Travel Rule adoption, growing use of crypto for sanctions evasion leave the sector exposed to FC

The report finds that while most MONEYVAL member jurisdictions have made substantial progress in regulating and supervising virtual asset service providers (VASPs)—with around 81% requiring licensing/registration and over 90% designating supervisors—significant weaknesses persist in enforcement, Travel Rule implementation (operational in only about 46% of jurisdictions), data quality, and action against unlicensed operators. It highlights growing risks of virtual assets being used for money laundering, terrorist financing, sanctions evasion…