The International Financial Action Task Force (FATF) has stated that stablecoins now account for the majority of illegal cryptocurrency activity and has called for increased oversight of issuing organizations. In a 42-page report released on Tuesday, the Paris-based agency noted that USD-pegged tokens are increasingly used in money laundering, scams, and cross-border payments related to sanctioned networks, including entities linked to Iran and North Korea.
FATF estimates that approximately $51 billion in illegal stablecoin transactions involving fraud and scams will occur in 2024. Data from Chainalysis shows that stablecoins make up up to 84% of the total $154 billion in illegal digital asset transactions in 2025. Another study by TRM Labs indicates that illicit entities received $141 billion in stablecoins in 2025 — the highest in five years.
FATF also warns that peer-to-peer transactions through non-custodial wallets remain a significant loophole and recommends applying anti-money laundering obligations to stablecoin issuers.
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