FATF warns of stablecoin crime risks, crypto executives: Not targeting the crypto industry
PANews reported on July 1 that the Financial Action Task Force (FATF) recently warned of a rise in stablecoin-related criminal activities, but executives of blockchain intelligence companies said that this is not a threat to the cryptocurrency industry, but rather emphasizes the need for strengthened supervision and monitoring.
Executives from Chainalysis and Asset Reality believe that this warning is intended to promote unified licensing and supervision of stablecoin issuers, strengthen real-time monitoring and international collaboration to track and combat illicit capital flows, rather than prohibit the development of stablecoins.
Chainalysis data shows that the 2025 Crypto Crime Report shows that 63% of on-chain illegal transactions are denominated in stablecoins. Experts point out that the transparency and traceability of stablecoins make them not the best choice for criminals. At the same time, centralized stablecoin issuers also have the ability to freeze illegal funds. For example, Tether once froze $225 million in USDT funds involved in the case.
In addition, blockchain investigator ZachXBT pointed out that Circle’s USDC was used by North Korean IT workers for payment activities, and said that Circle did not take adequate measures to detect or freeze such activities. Previously, Circle had frozen $57 million in USDC at the request of a US court.
You May Also Like
The Role of Technology in Effective Decision Processes
Sonitor Recognized as Best in KLAS for RTLS for the Second Time in Three Years
