How Turkey, UAE, Philippines, and Croatia Got Off FATF's Grey List and Boosted Crypto Growth

When the Financial Action Task Force (FATF) puts a country on its grey list, banks shut down accounts. Crypto exchanges pull out. Investors panic. For Turkey, the UAE, the Philippines, and Croatia, being on that list meant their digital asset markets were stuck in slow motion-blocked from global finance, seen as risky, ignored by major platforms. But between 2024 and 2025, all four got off. And it wasn’t luck. It was hard, focused reform. Here’s how they did it-and why crypto businesses are now seeing real momentum.

What FATF’s Grey List Really Means for Crypto

FATF isn’t a bank. It’s a global watchdog that sets rules to stop money laundering and terrorist financing. When a country is on its grey list-officially called Jurisdictions Under Increased Monitoring-it means FATF found serious gaps in their anti-money laundering (AML) and counter-terrorist financing (CTF) systems. For crypto, that’s a death sentence for growth.

Why? Because banks follow FATF’s lead. If a bank in Germany or New York sees a transaction coming from a grey-listed country, they flag it. They freeze it. Sometimes they refuse to work with any company tied to it. Crypto exchanges in those countries couldn’t open bank accounts. They couldn’t process fiat deposits. They couldn’t scale. Investors stayed away. Trading volumes dropped. Startups folded.

FATF’s rules for virtual assets are clear: countries must license crypto firms, track transactions (VASP rules), verify customer identities (KYC), and report suspicious activity. If they don’t, they get tagged. And until they fix it, the world treats them like financial no-go zones.

The UAE: Turning Transparency Into Trust

The UAE was on the grey list in 2023. Its crypto scene was booming-Dubai was calling itself a Web3 hub-but regulators weren’t keeping up. Shell companies were everywhere. Beneficial ownership? Hidden. Financial institutions? Lax oversight.

In 2024, the UAE didn’t just tweak rules. It rebuilt them. The Central Bank mandated that all virtual asset service providers (VASPs) register and report transaction data in real time. The Ministry of Finance launched a national beneficial ownership registry-finally making it public who owns what. Law enforcement started prosecuting shell company operators. By early 2024, FATF’s on-site team gave them a clean bill of health.

Result? Within months, Binance, Kraken, and Coinbase expanded their UAE operations. Local crypto startups like BitOasis and Rain raised funding from global VCs. Banks reopened accounts. The UAE’s crypto trading volume jumped 47% in the first half of 2025. It wasn’t just about being removed from the list. It was about proving they could be trusted.

The Philippines: From Underground to Official

The Philippines had a huge crypto user base-over 10 million people traded Bitcoin by 2023-but regulators were slow. The Securities and Exchange Commission (SEC) had no clear rules. Money changers operated like crypto exchanges without licenses. AML reporting? Nearly nonexistent.

In 2024, the government acted. The SEC created the first legal framework for VASPs in Southeast Asia, requiring licensing, KYC, and transaction monitoring. The Bangko Sentral ng Pilipinas (BSP) started auditing crypto firms. They trained police to track blockchain transactions. By February 2025, FATF confirmed the Philippines had closed all 11 strategic deficiencies in its action plan.

Now, local platforms like Coins.ph and PDAX can partner with international banks. Remittance companies using crypto to send money home are no longer flagged. A study by the University of the Philippines found that crypto-based remittances grew 62% in 2025-mostly because overseas workers could now use regulated channels without fear of account freezes.

Croatia: Small Country, Big Reform

Croatia wasn’t known for crypto. But in 2023, FATF found it had no laws governing virtual assets. Crypto exchanges operated in a legal gray zone. Tax compliance? Zero. AML reporting? Not required.

Croatia’s response was fast. By late 2024, they passed the Virtual Asset Service Provider Act, requiring all crypto firms to register with the Financial Intelligence Unit. They trained 200 financial investigators in blockchain analysis. They started prosecuting unlicensed platforms. In June 2025, FATF removed Croatia from the grey list after confirming real enforcement-not just paper laws.

Local crypto firms like CryptoKlub and Bit2Me now have banking access in the EU. Croatian developers are building DeFi tools with EU partners. The government even launched a pilot program to let citizens pay property taxes in crypto through licensed platforms. It’s small, but it’s real. And it’s only possible because FATF的信任 now exists.

Turkey: The Missing Piece

Turkey’s story is different. It’s still on the FATF grey list as of June 2025. But it’s not for lack of crypto activity. Over 15 million Turks trade crypto-more than 20% of the adult population. They use it to protect savings from inflation. But the government’s approach has been chaotic.

One year, crypto is taxed. The next, it’s banned for banks. No licensing system exists. No VASP registration. No real AML controls. FATF has repeatedly warned Turkey. Yet, the country hasn’t submitted a formal action plan.

So why include Turkey here? Because it’s the cautionary tale. The UAE, Philippines, and Croatia didn’t just say they’d fix things-they did. Turkey has the people, the tech talent, and the demand. But without structured reform, it risks being left behind. While its neighbors attract global crypto firms, Turkey’s startups still struggle to get banking services. Investors hesitate. The potential is there. The will isn’t.

Why This Matters for Crypto Businesses

Getting off the FATF grey list isn’t just about reputation. It’s about money. When a country is removed:

• Banks reopen accounts for crypto firms
• International exchanges list local tokens
• VCs start investing
• Payment processors allow fiat on-ramps
• Tax compliance becomes possible

In the UAE, a crypto startup that couldn’t get a bank account in 2023 now has one with HSBC. In the Philippines, a remittance app that was blocked by PayPal can now process payments legally. In Croatia, a DeFi project can now legally partner with a German bank.

And for users? It means safer, faster, cheaper access to crypto. No more sketchy P2P platforms. No more frozen funds. No more fear.

The Bigger Picture: FATF’s New Rules

In June 2025, FATF updated its guidance to emphasize financial inclusion. That’s a big shift. It’s no longer just about catching criminals-it’s about bringing people into the system. If you’re excluding low-income users because your AML rules are too strict, FATF says you’re part of the problem.

That’s why the Philippines’ success matters. They didn’t just crack down on bad actors-they created a legal path for millions of unbanked users to use crypto safely. That’s the future. Regulated access, not blocked access.

And it’s working. The number of countries on the grey list dropped from 31 to 24 between 2023 and 2025. The message is clear: if you fix your systems, the world will let you back in.

What Comes Next?

The next countries likely to be removed are Ghana, Morocco, and Senegal-all have completed their action plans and are waiting for FATF’s October 2025 meeting. Meanwhile, the British Virgin Islands and Bolivia were added to the grey list in June 2025, showing the list is still active.

For crypto businesses, the lesson is simple: regulation isn’t the enemy. Bad regulation is. Countries that took the time to build clear, enforceable rules didn’t kill crypto-they saved it. And the market is responding.

If you’re running a crypto business in a grey-listed country, don’t wait for FATF to push you. Start building your compliance now. License your platform. Implement KYC. Document everything. The countries that got off the list didn’t get lucky. They got serious.