The Financial Action Task Force (FATF) has released its seventh update on the implementation of standards for virtual assets and virtual asset service providers (VASPs), noting significant progress in global regulation. As of 2026, 86% of jurisdictions have completed risk assessments, and 83% have legislated the Travel Rule. The compliance rate for Recommendation 15 has increased to 34%. Despite these advancements, the FATF report identifies ongoing challenges in enforcement, VASP identification, offshore oversight, and DeFi regulation. It highlights emerging risks such as stablecoin misuse, non-custodial wallet transactions, and AI-assisted fraud. The FATF calls for enhanced international cooperation, risk-based supervision, and stronger public-private partnerships to address these issues.