FATF: Stablecoins dominate illegal cryptocurrency flows, and P2P transactions become a regulatory blind spot
According to Cointelegraph, the Financial Action Task Force (FATF), an international anti-money laundering regulatory body, pointed out in its latest report that peer-to-peer (P2P) stablecoin transfers via self-custody wallets have become a critical vulnerability in the cryptocurrency ecosystem, as they can bypass anti-money laundering (AML) regulations.
The FATF emphasized that such transactions can be completed without going through regulated intermediaries, creating a regulatory gap. The report indicates that by 2025, stablecoins will account for 84% of the total volume of illegal transactions, becoming a primary tool for evading sanctions and other illicit activities. Although blockchain transactions are traceable, the anonymity of wallet addresses increases the difficulty of attribution. The FATF calls on countries to assess the risks posed by stablecoin arrangements and to take commensurate mitigation measures, including enhancing monitoring when self-custody wallets interact with regulated platforms, as well as clarifying the AML obligations of stablecoin issuers and distributors.
You may also like

Morning Report | Prediction market platforms like Kalshi and Polymarket jointly sue Kentucky over 14.25% trading tax; Bridgewater founder discusses decision-making in the AI era: principled thinking should run parallel to AI, human insight remains irre...

What is the connection between Huang Zheng of Pinduoduo and blockchain?

The other side of Musk's trillion-dollar fortune: 85% cannot be sold

The U.S. government prohibits foreigners from using Fable 5, Anthropic issues a rebuttal

Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market

The trillion-dollar valuation test: Are the three major super IPOs a celebration for tech stocks or a nightmare for the crypto market?

Morning Report | Digital Asset completes $355 million financing led by a16z Crypto; Meta completes operational separation from Manus

a16z Crypto Partner: Cash flow is the moat

Cryptocurrency market makers collectively seek change as it becomes increasingly difficult to make money

How TradeXYZ, xStocks, and Alpaca break down the SpaceX IPO into three different strategies

$75 billion in risk asset redistribution: How will SpaceX's IPO affect U.S. stocks and Bitcoin?

Why Is BlackRock Investing $5 Billion in the SpaceX IPO?

Morning News | CME Group launches Nasdaq Cryptocurrency Index futures; Asset management giant Janus Henderson strategically invests in Ethena

Bitcoin Layer 2 Network Botanix: Why Did We Choose to Dissolve?

Why did Oracle deliver the strongest financial report in history, yet its stock price fell?

When the P2P illicit funds from ten years ago turned into 60,000 bitcoins

Dialogue with OmenX Founder: Why does the prediction market need an evolution from "spot" to "derivatives"?

