FATF Crypto Rules: What They Mean for Traders and Exchanges

When you trade crypto, the FATF crypto rules, a global standard set by the Financial Action Task Force to stop money laundering and terrorist financing through digital assets. Also known as crypto anti-money laundering guidelines, these rules don’t just target shady operators—they force every exchange, wallet provider, and even individual trader to prove who they are and where their money came from. This isn’t optional. If you’re using a regulated exchange like Kraken, Binance, or Reku, you’ve already been asked for ID, proof of address, or transaction history. That’s the FATF in action.

The core of these rules is the Travel Rule, a requirement that crypto platforms share sender and receiver details for transactions over $1,000. Also known as VASP rule, it’s what makes anonymous transfers nearly impossible on major platforms. This rule applies to transfers between exchanges, from wallets to exchanges, and even between peer-to-peer platforms that handle fiat on-ramps. South Korea, Australia, Japan, and Canada all enforce it strictly—exchanges that ignore it get shut down or fined. In places like Algeria or Ecuador, where crypto is banned outright, the FATF rules don’t matter because the government blocks access entirely. But if you’re in a country that allows crypto, you’re under this system.

What does this mean for you? If you’re holding crypto in a non-custodial wallet, you’re not directly affected—yet. But if you ever cash out to a bank, buy with a credit card, or trade on a regulated platform, your identity and transaction history will be tied to that wallet. Privacy coins like Monero and Zcash are being delisted from exchanges because they can’t comply with the Travel Rule. And if you’re running a business that accepts crypto, you now need to track and report every transaction over $1,000, just like a bank would. The FATF didn’t invent surveillance, but it gave it a global license.

Some traders think they can bypass this with decentralized platforms or mixers. But the truth is, regulators are catching up fast. Chainalysis, Elliptic, and other tracking tools are now used by governments worldwide to trace crypto flows—even across chains. The FATF doesn’t just want names and addresses; it wants the full trail. That’s why exchanges like BTCBOX and Coinviva now require full KYC before you can even deposit. It’s not about trust—it’s about legal survival.

So if you’re wondering why your exchange asks for so much personal info, or why your favorite privacy coin vanished from the site, it’s not random. It’s the FATF crypto rules rolling out in real time. The world of crypto isn’t lawless anymore. It’s regulated, tracked, and monitored—and the rules are tightening every year. What follows below are real-world examples of how these rules play out: from banned countries to exchange shutdowns, from token delistings to tax crackdowns. You’ll see how this plays out on the ground, not just in policy documents.