FATF Compliance: What It Means for Crypto Exchanges and Users
When you hear FATF compliance, the global standard set by the Financial Action Task Force to stop money laundering and terrorist financing through financial systems. Also known as crypto AML rules, it's not just paperwork—it’s what decides whether a crypto exchange lives or dies. If a platform doesn’t follow FATF rules, regulators step in. Look at TradeOgre: Canada seized $56 million because it had no KYC or transaction tracking. That wasn’t a random crackdown—it was FATF compliance in action.
FATF compliance isn’t just about big exchanges. It affects every crypto user. If you’re trading on a platform that doesn’t verify identities, you’re on a shaky ground. The same rules that forced Malta to create clear licensing paths for crypto businesses also pushed Russia to restrict ruble-based trading and Morocco to struggle with underground markets. These aren’t isolated events—they’re all pieces of the same global puzzle. FATF requires virtual asset service providers to collect and share customer data, track transfers above $1,000, and report suspicious activity. That’s why platforms like VCC Exchange and EZ Exchange got shut down or flagged: they skipped the basics.
It’s not about stopping innovation. It’s about making sure crypto doesn’t become a tool for criminals. When you see a crypto airdrop or a new DEX popping up, ask: Do they know who their users are? Can they trace funds? If not, FATF compliance is missing—and so is safety. That’s why TokenFollow covers everything from MiCA licenses in Europe to CNBV rules in Mexico. We don’t just track prices. We track the rules that make or break your investments.
Below, you’ll find real-world examples of what happens when FATF compliance is ignored, followed, or misunderstood. From seized exchanges to regulated platforms, these posts show you the stakes—and how to stay clear of trouble.
Pakistan Virtual Assets Regulatory Authority (PVARA): How Crypto Oversight Works in 2025
Pakistan's new PVARA authority now fully regulates crypto, requiring all platforms to be licensed. Learn how it works, who can operate, and what it means for users and businesses in 2025.