FATF 2025 Crypto Asset Recovery Guidance & Best Practices
FATF has released its 2025 Crypto Asset Recovery Guidance, outlining policy frameworks, investigation methods, and full lifecycle management for seized virtual assets. It advises treating virtual assets as a distinct asset class, building operational capacity from the first encounter, and deploying blockchain analysis tools for real-time tracing. The report finds over 80% of jurisdictions rate low to moderate in asset recovery effectiveness, highlighting the rising role of virtual assets in finance and crime. Seizure methods include private key acquisition, VASP collaboration, and stablecoin issuer freezes, followed by secure custody and phased disposal. The guidance also reinforces that effective crypto asset recovery relies on public-private partnerships like Operation Spincaster—which blocked and recovered $162 million in fraud proceeds—and advanced analytics. It recommends solutions such as Chainalysis Reactor, Wallet Scan, and Rapid, supported by specialist training. With more than $75 billion in on-chain criminal assets at stake, the new rules aim to strengthen financial integrity, support victims, and enhance market confidence.
Neutral
The FATF guidance provides a structured framework for law enforcement but does not introduce new regulations or policies that would directly affect crypto prices. It is aimed at improving asset recovery and compliance rather than altering market fundamentals. Therefore, its publication is unlikely to trigger significant short-term price movements or major shifts in trader sentiment, resulting in a neutral market impact.