PANews March 4th Report: According to CoinDesk, the international anti-money laundering standards organization FATF (Financial Action Task Force) has issued a report warning that stablecoins have become the most widely used virtual asset in illegal transactions, calling for increased regulation of issuers. The report cites Chainalysis data indicating that by 2025, stablecoins will account for 84% of illegal virtual asset transaction volume, involving $154 billion. TRM Labs reports that in 2025, illegal entities received $141 billion in stablecoins, a five-year high, with sanctions-related activities accounting for 86% of illegal crypto funds flow. Actors such as Iran and North Korea are using stablecoins like USDT for large-scale WMD proliferation financing and cross-border sanctioned payments.
FATF warns that peer-to-peer transfers through non-custodial wallets are a key vulnerability, as these transactions can bypass AML controls. FATF urges countries to impose AML obligations on stablecoin issuers and consider requiring wallet freezing capabilities and restricting certain smart contract functions. The current market capitalization of stablecoins has exceeded $300 billion.
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Iran and North Korea are both using it! Stablecoins have become the preferred virtual asset for illegal transactions, with involved fraud totaling $51 billion.
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