The Financial Action Task Force this week warned that crimes linked to stablecoins are on the rise. The global watchdog urged regulators to step up monitoring and controls.
It said stablecoins could pose risks if they grow rapidly without proper checks. The alert came as part of a broader push to keep digital assets safe.
Industry Pushback
Executives at leading blockchain intelligence firms do not see the warning as a threat. They say it shows a need for better data and rules rather than a ban.
Aidan Larkin, co‑founder of Asset Reality, said effective rules help build trust. He noted that clear regulation supports growth.
Jordan Wain, policy adviser at Chainalysis, said the FATF wants more consistent licensing. He added that such steps help spot bad actors early.
Also Read: Uber Plans To Use Stablecoins To Slash Cross-Border Money Transfer Costs
Stablecoin Crime Data
Chainalysis data from its 2025 Crypto Crime Report shows that 63% of illicit on‑chain transactions use stablecoins. This share reflects the ease of moving value in a token pegged to a fiat currency.
Wain said real‑time monitoring is vital. He argued that better cooperation across borders will help law enforcers trace funds.
Cross‑Border Rules
The FATF highlighted progress on the Travel Rule. It now applies in 99 jurisdictions. The rule forces firms to share details on cross‑border payments. FATF also issued Best Practices on Travel Rule Supervision to guide supervisors.
A table in the report lists steps taken by countries that cover 98% of the global virtual asset market. These zones must fully enforce FATF standards to cut risks worldwide.
North Korea Angle
Blockchain investigator ZachXBT recently said North Korean IT workers move millions of dollars in USDC. He claimed Circle has not frozen these addresses. His view ties to earlier warnings about the Lazarus Group.
This hacking group has stolen crypto from major exchanges. The FATF alert echoes such concerns, as sanctioned states seek easy routes for funds.
Why It Matters?
Unchecked stablecoin use can fuel crime and evade sanctions. When bad actors move cash through digital coins, tracing becomes harder. This risk can erode faith in all crypto.
That, in turn, might slow wider adoption and hurt legitimate users. Strong rules can help keep honest firms safe from fallout.
Calls for Better Rules
FATF asked nations to improve licensing and registration of virtual asset service providers. It also noted problems in spotting who runs these services. Offshore firms pose extra challenges.
Larkin and Wain agreed that transparency and tough checks on issuers will help. They said that matching anti‑money laundering standards in banks to crypto firms is key.
Role of Tech Firms
The FATF thanked Chainalysis, Lukka Inc., Merkle Science, and TRM Labs for data and advice. Their input helped shape the report’s findings.
Close work between tech firms and regulators can speed up solution-building. Both sides share an interest in stopping crime while letting the market grow.
Stablecoins offer fast, low‑cost transfers but carry new risks. The FATF warning is a signal to act before problems worsen. Industry experts view it as a call for clear rules and joint effort.
Also Read: CryptoQuant CEO Warns, “Dark Stablecoins” To Gain Traction Under Stricter Rules