Feb, 11 2026
When the FATF puts a country on its grey list, it’s not just a slap on the wrist-it’s a red flag that sends ripples through global finance. Banks freeze accounts. Crypto exchanges shut down operations. Investors pull out. But in the last two years, four countries-UAE, Philippines, Croatia, and Turkey-did something rare: they got off the list. And for crypto, that change wasn’t just paperwork. It was a lifeline.
What the FATF Grey List Actually Means
The Financial Action Task Force (FATF) isn’t a law enforcement agency. It’s a global watchdog that sets the rules for fighting money laundering and terrorist financing. When a country ends up on its Jurisdictions Under Increased Monitoring list (aka the grey list), it means FATF has found serious gaps in its anti-crime systems. Not criminal activity itself-but weak oversight, poor tracking of money flows, or lack of enforcement. Being on the list doesn’t mean you’re illegal. But it makes doing business with you risky. Banks in Europe, the U.S., and Asia start asking: "Should we even touch this country?" For crypto companies, that meant no bank accounts. No payment processors. No access to SWIFT. Many were forced to shut down or move offshore. The good news? The FATF doesn’t just punish. It gives you a roadmap to fix things. And these four countries followed it.The UAE: From Grey List to Crypto Hub
In early 2024, the UAE was removed from the FATF grey list. Why? Because it stopped pretending its free zones were lawless. Before 2023, the UAE had dozens of free zones-places where companies could register with almost no oversight. Some of them became shell factories for crypto firms that never verified their users. FATF called it out: "No real beneficial ownership tracking. No enforcement. No accountability." So the UAE acted. It forced every virtual asset service provider (VASP) to register with the Securities and Commodities Authority (SCA). It required real KYC-full ID checks, proof of address, source of funds. It started prosecuting shell companies. By late 2023, the UAE had fined over $120 million in crypto-related AML violations. The result? Crypto firms didn’t flee. They doubled down. Binance, Bybit, and OKX expanded their regional HQs in Dubai. The UAE became the first country to fully integrate crypto licensing into its national financial framework. Today, over 600 licensed crypto firms operate there-up from 80 in 2022.The Philippines: Turning Crypto into Compliance
The Philippines was on the grey list since 2021. FATF’s report was brutal: "No effective supervision of digital asset exchanges. No asset recovery. No cooperation between regulators." The Bangko Sentral ng Pilipinas (BSP) didn’t panic. They built. In 2023, they launched the Virtual Asset Service Provider (VASP) Regulatory Framework. Every crypto exchange had to apply for a license by June 2024. They had to prove they could freeze suspicious funds, report transactions over $1,000, and verify users in real time. Over 300 exchanges applied. Only 27 got licensed. They didn’t stop there. The BSP partnered with local banks to create a sandbox for compliant crypto-to-fiat on-ramps. Now, users can buy Bitcoin with pesos through regulated apps like Coins.ph and Paxful Philippines-backed by real banking partners. By February 2025, FATF confirmed the Philippines had fixed its gaps. Crypto adoption didn’t drop-it exploded. A 2025 survey found 42% of Filipinos now use crypto regularly, up from 28% in 2023. Why? Because they could finally trust it.
Croatia: Small Country, Big Regulatory Leap
Croatia’s removal in June 2025 surprised many. It’s not a crypto giant. But it did something smarter than most: it didn’t try to compete. It just got compliant. Before 2024, Croatia’s financial regulator, HANFA, had no real power over crypto firms. Exchanges operated like unlicensed money transmitters. FATF flagged it: "No criminal prosecutions. No supervision. No data sharing." Croatia passed a new law in late 2024 that gave HANFA full authority over VASPs. Every crypto company had to register. Every transaction over €1,000 had to be reported. They created a centralized registry where all crypto wallets were linked to legal entities. They didn’t ban anything. They didn’t overregulate. They just made sure no one could hide. And it worked. By early 2025, Croatia had prosecuted its first crypto money laundering case-a ring that moved €18 million through fake NFT sales. The conviction sent a message: "We’re watching." Now, Croatian crypto startups can open bank accounts. EU investors are signing deals. And the country’s fintech scene is growing 30% a year.Turkey: The Missing Piece
Here’s the catch: Turkey is not officially off the FATF grey list. Yet. Turkey was placed on the list in 2021 for weak oversight of money transfers and suspicious financial flows. But in 2025, FATF stopped short of removing it-despite major reforms. Why? Because Turkey’s crypto market exploded without regulation. Over 40% of Turkish adults own crypto, mostly Bitcoin and stablecoins. The government didn’t stop it. It didn’t license exchanges. It didn’t require KYC. Instead, it turned a blind eye-while publicly claiming it was "working on it." FATF’s last report noted: "Turkey has made progress in drafting legislation, but enforcement remains inconsistent. No meaningful prosecutions. No public registry of VASPs." So why include Turkey here? Because it’s the outlier. While the UAE, Philippines, and Croatia built systems, Turkey relied on market demand. And it worked-for now. But without formal FATF approval, Turkish crypto firms still can’t access global banking. Exchanges like Paribu and BiLira are stuck. They can’t onboard EU or U.S. users. They can’t list on major global platforms. Turkey’s story isn’t a success. It’s a warning: You can’t outgrow regulation. You have to earn it.
Why This Matters for Crypto
When a country leaves the FATF grey list, it doesn’t just change its image. It changes the rules of the game. - Banks reopen accounts.- Payment processors like Stripe and Adyen start working with local crypto firms.
- Global exchanges like Coinbase and Kraken add local fiat on-ramps.
- Investors feel safe putting money into local crypto startups.
The UAE now has a $12 billion crypto market. The Philippines has over 20 million active crypto users. Croatia’s fintech sector grew 50% in 2025. And the ripple effect? Financial institutions worldwide are updating their risk models. FinCEN told U.S. banks in March 2025: "You no longer need to treat transactions from the UAE or Philippines as high-risk." That’s huge. It means lower fees. Faster transfers. More innovation.