FATF reports stablecoins now dominate illicit crypto flows and sanctions evasion

The Financial Action Task Force, an international financial watchdog, stated that stablecoins have become the primary vehicle for illicit cryptocurrency transfers, including sanctions evasion. The organization noted that peer-to-peer stablecoin transfers via self-custody wallets can circumvent anti-money laundering checks. FATF urged countries to assess the associated risks and implement appropriate regulatory measures to monitor stablecoin transactions.