FATF Urges Stronger Regulation After $1.46 Billion Crypto Theft

The Financial Action Task Force (FATF) reported on June 27, 2025, that North Korean hackers stole $1.46 billion from ByBit, raising concerns within the crypto community. The FATF’s report emphasizes the need for stronger global regulation to minimize further risks in the cryptocurrency sector.

FATF’s findings underline ongoing risks in licensing VASPs and supervision of offshore risks, as highlighted in complex proliferation financing and sanction evasion schemes. The report accentuates international coordination to address these challenges effectively.

FATF Demands Global Cooperation in Cryptocurrency Oversight

The recent FATF report exposes vulnerabilities in the global cryptocurrency system following a large-scale hacking incident. It highlights significant risks in VASP licensing and offshore supervision. International regulatory bodies facing these challenges must act swiftly to mitigate further threats.

As stated in the report, the vast majority of stolen assets remain unrecovered, with only 3.8% retrieved. This showcases a pressing need for enhanced asset recovery frameworks and stronger international cooperation to safeguard financial systems from future incidents.

The FATF urges strengthened global efforts to address money laundering and terrorist financing risks involved within the crypto industry. While many key leaders have yet to make formal statements, industry voices call for proactive measures in response. According to the FATF, “The FATF welcomes progress but notes significant gaps in licensing/registration and oversight of VASPs, especially in identifying risks from offshore service providers. The need for improved asset recovery and coordinated global response is critical, given the increase in on-chain illicit activity.”

Bitcoin Nears $108K Amid Rising Regulatory Concerns

Did you know? The massive $1.46 billion theft attributed to North Korean hackers is among the largest in crypto history, drawing comparisons to previous high-profile hacks like the Ronin Bridge incident.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $107,498.05, with a market cap of $2.14 trillion, dominating 64.97% of the market. Over the past 90 days, BTC has seen a rise of 30.67%, reflecting broader market volatility as regulatory concerns heighten. The circulating supply stands at 19,884,225 tokens, nearing its maximum of 21 million.

Coincu research emphasizes the critical role of regulatory frameworks in shaping market dynamics. Stronger compliance systems can mitigate illicit financial activities, ensuring stability and a more secure crypto future for investors and stakeholders. “Consider implementing additional sanctions authorities targeted at foreign virtual asset providers that facilitate illicit finance… Engage and work with foreign jurisdictions that have weak or non-existent AML/CFT regimes for virtual assets and VASPs,” advises the U.S. Treasury.