FATF Crypto Regulations: What It Means for DeFi, Exchanges, and You

When you hear FATF, the Financial Action Task Force, an intergovernmental body that sets global anti-money laundering standards. Also known as the Financial Action Task Force on Money Laundering, it doesn’t run banks or issue crypto—but its rules control how crypto exchanges, DeFi platforms, and even wallet providers operate worldwide. If a country wants to avoid being blacklisted, it must follow FATF’s guidelines. That means every crypto platform in the EU, US, Japan, and most of Asia has to collect user data, verify identities, and report suspicious activity—no exceptions.

FATF doesn’t just target big exchanges like Binance or Coinbase. Its Virtual Asset Service Providers (VASPs), any entity that handles crypto transfers, including DeFi protocols and decentralized exchanges. Also known as crypto intermediaries, they’re required to follow the "Travel Rule," which forces them to share sender and receiver info for transactions over $1,000. That’s why you can’t send crypto from one wallet to another without KYC if the platform is FATF-compliant. Even DeFi lending platforms like Aave and Compound now face pressure to integrate identity checks. And in places like the EU, where MiCA, the Markets in Crypto-Assets regulation, enforces FATF standards across all member states. Also known as EU crypto law, it’s making compliance mandatory for every crypto project operating there. This isn’t about stopping innovation—it’s about stopping criminals. But it’s also changing how crypto works. You can’t ignore FATF if you’re trading, staking, or using DeFi. Countries like Russia are tightening withdrawal limits. Exchanges like Coinsuper collapsed because they ignored these rules. And fake airdrops like WKIM Mjolnir or BABYKEKIUS? They thrive in unregulated corners—exactly where FATF wants to shut them down.

What you’ll find below are real, up-to-date breakdowns of how FATF’s rules are playing out in the wild: from how Russian banks freeze crypto withdrawals, to how EU regulators are assigning oversight to national authorities, to why low-liquidity tokens like MOON or BULEI are red flags under AML scrutiny. These aren’t theory pieces—they’re field reports from the front lines of crypto compliance. If you’re trying to protect your assets, avoid scams, or understand why your wallet keeps asking for ID, this is the context you need.