Summary
- The Financial Action Task Force (FATF) said it is warning that the use of stablecoins to evade sanctions and launder money is increasing.
- The report said it estimates that, as of 2024, fraud and illegal activity involving stablecoins amounted to about $51 billion.
- The FATF said it emphasized that as stablecoin adoption accelerates, regulators in each country must swiftly close compliance gaps.
Forecast Trend Report by Period
The Financial Action Task Force (FATF) warned in a recent report that cases of stablecoins being used to evade sanctions and launder money are on the rise.
According to CoinDesk, a media outlet specializing in virtual assets (cryptocurrencies), the FATF said, “Stablecoins are currently the virtual asset most frequently used by multiple countries, including Iran and North Korea, for illicit transactions,” adding that “stablecoins account for a substantial share of on-chain illicit activity.”
The report estimates that, as of 2024, the scale of fraud and illegal activity involving stablecoins amounted to about $51 billion, noting that as stablecoin adoption expands, the potential for criminal misuse is also increasing.
The FATF stressed that “as stablecoin adoption accelerates, regulators in each country must swiftly close compliance gaps.”
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
