The Financial Action Task Force (FATF) warns that peer-to-peer (P2P) stablecoin transactions through self-custody wallets are a significant blind spot in the cryptocurrency ecosystem, as they can occur without managed intermediaries. In a recent report, FATF states that transactions between unhosted wallets may fall outside anti-money laundering (AML) oversight because they do not involve exchanges or custodians obligated to comply.
The agency urges countries to assess the risks associated with the stablecoin model and implement proportionate mitigation measures, including increased oversight when unhosted wallets interact with licensed platforms, as well as clarifying AML and counter-terrorism financing obligations for stablecoin issuers and distributors.
According to Chainalysis data, illegal addresses received at least $154 billion in cryptocurrency in 2025, with stablecoins accounting for 84% of illicit transaction value. However, total illegal transactions still account for less than 1% of the entire on-chain volume.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Warren probes China-based Bitmain over US security concerns: Report
Senator Elizabeth Warren has reportedly asked the US Commerce Department to explain how it is handling potential national security risks tied to Chinese crypto mining giant Bitmain, following previous reports that the firm has been under federal scrutiny.
In a letter sent Thursday to Commerce
Cointelegraph8m ago
Coin Center Warns US Crypto Crackdown Possible Without Clear Rules
Peter Van Valkenburgh warns that without passing the CLARITY Act, future U.S. administrations may impose strict regulations on crypto. He emphasizes the need for statutory protections to prevent reliance on political climates, as current agreements stall in Congress.
CryptoBreaking32m ago
Future US governments could crack down on crypto without clear rules: Coin Center
Failing to pass the crypto market structure bill, known as the CLARITY Act, could leave the door open for a future less industry-friendly US government to crack down on crypto again, Peter Van Valkenburgh the executive director of advocacy group Coin Center says.
In an X post on Friday, Van Valkenb
Cointelegraph5h ago
Lummis Rebuts Criticism, Calls CLARITY Act ‘Strongest Protection’ for DeFi
_Lummis backs stronger DeFi protections, but critics warn unclear rules could still expose developers to legal risk._
As the CLARITY Act moves closer to a Senate committee review, debate around it is intensifying. Critics question whether the bill truly protects DeFi developers from legal risk. Sen
LiveBTCNews6h ago
The President of South Korea nominated Shin Hyun-sung as a candidate for the new governor of the central bank, and Shin has a negative attitude towards the Korean won stablecoin.
Gate News reports that on March 29, South Korean President Lee Jae-myung nominated Shin Hyun Song, the head of the Monetary and Economic Department of the Bank for International Settlements, as a candidate for the new governor of the Bank of Korea. It is reported that Shin Hyun Song is known as a "pragmatic hawk" and holds a negative attitude towards the Korean won-pegged stablecoin promoted by the Lee administration. Shin Hyun Song believes that in countries with highly volatile exchange rates that are susceptible to capital outflows, stablecoins can easily become a tool for capital flight, and stablecoins pegged to the local currency may accelerate this trend.
GateNews8h ago
Canada proposes crypto political donation ban over foreign interference fears
Canada’s federal government has proposed a total ban on cryptocurrency donations to political parties, citing concerns that foreign entities could exploit the technology to interfere in elections.
Known as the Strong and Free Elections Act, the bill was introduced on Thursday and proposed to
Cointelegraph9h ago
