https://www.digitaltoday.co.kr/en/view/18401/fatf-warns-stablecoins-could-be-used-to-evade-sanctions

The Financial Action Task Force (FATF) said in a new report that peer-to-peer stablecoin transactions and self-custody wallets are creating regulatory blind spots and require stronger oversight, Cointelegraph reported on Tuesday.

FATF warned that as stablecoins are used across areas including financial transactions, payments and cross-border remittances, the likelihood of evading anti-money laundering (AML) rules is rising.

It said P2P trading makes oversight difficult because transactions take place directly between users without regulated intermediaries. The report stressed that monitoring should be strengthened when transactions using self-custody wallets connect to platforms subject to regulation, and that clear AML obligations should be imposed on entities responsible for stablecoin issuance and distribution.

FATF also said that while transactions on public blockchains can be traced, effective monitoring is difficult because wallet addresses use pseudonyms.

Blockchain analytics firm Chainalysis said at least $154 billion flowed into illegal cryptocurrency addresses in 2025, and 84 percent of that was in transactions using stablecoins.

Chainalysis said illegal transactions accounted for less than 1 percent of total cryptocurrency transaction volume, but FATF warned that stablecoins account for a growing share of illicit transactions.