In Law360, Counsel Leah Moushey and Senior Advisor Franco Jofré, along with Forensic Risk Alliance, provide their insights on the Financial Action Task Force's (FATF) recent "Targeted Update on the Implementation of FATF Standards on Virtual Assets and Virtual Asset Service Providers." The authors describe key challenges with respect to implementing FATF's recommendations, including the failure by certain jurisdictions to conduct virtual asset-focused risk assessments, legislative shortcomings, and the absence of comprehensive compliance tools to facilitate the adoption of the "Travel Rule." Notwithstanding, they also highlight encouraging facts regarding the state of international virtual asset compliance, describe how the U.S. is adopting FATF’s recommendations, and discuss ongoing risks for VASPs with a U.S. nexus.