FATF crypto rules: What they mean for your trades and exchanges
When you trade crypto, deposit on an exchange, or send funds across borders, you’re likely already affected by the FATF crypto rules, a global standard set by the Financial Action Task Force to prevent money laundering and terrorist financing using virtual assets. Also known as the FATF guidelines for virtual assets, these rules force exchanges, wallet providers, and even peer-to-peer platforms to collect and share user data — or risk being shut down by banks and regulators.
The FATF doesn’t have police power, but its 200+ member countries follow its recommendations. That means if your exchange doesn’t comply, it can’t access the global financial system. In 2019, FATF updated its rules to require virtual asset providers, any company that handles crypto transfers, including exchanges and custodial wallets. Also known as VASPs, they must now collect and pass along the sender’s and receiver’s name, account number, and address with every transaction over $1,000. This is called the "Travel Rule" — yes, like on airplanes. It’s not optional. Platforms like Bybit, Kraken, and even smaller regional exchanges like AltcoinTrader and ICRYPEX have had to build systems to track this data. If they don’t, their bank accounts get frozen.
But it’s not just about big exchanges. These rules trickle down to you. If you use a non-custodial wallet like ChangeNOW or Merchant Moe and send crypto to a regulated exchange, that exchange might block your deposit because they can’t verify who sent it. That’s why some platforms now require ID verification even for small trades. And if you’re in Nigeria, Turkey, or South Africa — places with strict capital controls — these rules make it harder to move money without jumping through hoops. The FATF doesn’t care if you’re buying Bitcoin for fun or sending remittances to family. If the transaction crosses borders and involves a regulated entity, you’re in scope.
Some people call this surveillance. Others say it’s the price of legitimacy. Either way, it’s real. The FATF crypto rules are why you now see KYC forms everywhere, why some airdrops won’t let you claim from certain countries, and why platforms like Ju.com or NEXT.exchange have to be extra careful about who they serve. These aren’t suggestions. They’re legal requirements enforced by the IMF, World Bank, and national financial authorities.
Below, you’ll find real-world examples of how these rules play out — from exchange reviews that call out compliance gaps, to guides on how crypto remittances still struggle under these restrictions, to deep dives on platforms that tried to bypass them and got burned. This isn’t theory. It’s what’s shaping your trading experience right now.
