Blatter was speaking in Wales and said: "My personal view is that it is right to say that points should be deducted for offences by clubs.
"National associations and leagues must have the courage to do that, then things will stop.
"Take the instances of racism, you can give £100,000, £200,000 fines but there is always someone who will pay that but if you take away points, that will be an example.
"It hurts but I would be in favour of points deductions. When you have crowd trouble it is too easy to say games should be played in closed stadiums; points loss is better.
"We have now had a case (Chelsea) to analyse," said Blatter. "It has been done by a committee with a judge and representatives of many clubs. That has now been settled.
"There are clubs now who are looking at their books, some have even announced that a certain player has no contract with them and he is an amateur.
"They have done this to try to make sure that the player does not come under the jurisdiction of congress.
"There is an age limit in the FIFA statute that stops a player being transferred internationally until he is 18. The European Union is different, it is 16," he added.
"We now have a committee where each case is dealt with individually to see if a transfer can be allowed or not, it is the start of greater control of our game."
Chelsea, of course deny any wrongdoing over the case of Gael Kakuta who they signed from French Club Lens.
Blatter has called it "child-trafficking".