FATF Highlights Risks in Stablecoin P2P Transfers via Self-Custody Wallets
The FATF warns that peer-to-peer stablecoin transfers using self-custody wallets bypass AML oversight, creating a key vulnerability.Summary
The Financial Action Task Force (FATF) has issued a report highlighting that peer-to-peer (P2P) stablecoin transfers conducted through self-custody or unhosted wallets pose a significant risk because they occur without regulated intermediaries, creating gaps in Anti-Money Laundering (AML) oversight. While on-chain activity is traceable, the pseudonymous nature of wallet addresses complicates attribution. The FATF urges jurisdictions to assess these risks and apply proportionate mitigation measures, such as enhanced monitoring when self-custody wallets interact with regulated platforms, and clarifying AML/counterterrorism financing obligations for stablecoin issuers. This concern arises as stablecoins increasingly feature in payments and cross-border transfers, despite illicit activity accounting for less than 1% of total crypto transaction volume, though stablecoins made up 84% of the $154 billion illicit volume received by crypto addresses in 2025, according to Chainalysis.
(Source：Cointelegraph)