The Financial Action Task Force (FATF) urged countries to enhance regulation of virtual assets and ensure compliance with its 2018 standards on virtual assets.

The FATF  said during its latest Plenary meeting in Paris that many countries have failed to develop and adhere to its recommendations after almost five years since it made them. It added that most countries had not implemented its “travel rule” that mandates holding originator and beneficiary information — among other details of virtual asset transactions.

The watchdog said the lack of regulation of virtual assets allows criminal and terrorist financiers to exploit the system for their own needs — especially in the case of ransomware attacks, where criminals are able to steal vast sums and get away without detection or repercussions.