International finance watchdog warns stablecoins are increasingly used in sanctions evasion and money laundering

The Financial Action Task Force (FATF) issued a report stating that stablecoins now constitute the majority of illicit cryptocurrency activity, posing significant risks, particularly through peer-to-peer transfers that bypass anti-money laundering (AML) controls. The watchdog cited data indicating stablecoins accounted for 84% of the $154 billion in illicit virtual asset transaction volume in 2025, highlighting their use by actors in Iran and North Korea for proliferation financing and sanctions evasion. In response, the FATF urged countries to impose AML obligations on stablecoin issuers and consider implementing tools like wallet freezing and smart contract restrictions to close compliance gaps as stablecoin adoption accelerates.

(Source：CoinDesk)