FATF says criminals are increasingly using stablecoins to evade crypto AML controls

Criminal networks are increasingly turning to stablecoins for illicit finance, and most identified onchain criminal activity now involves the dollar-pegged tokens, the Financial Action Task Force said in its latest annual review of countries’ implementation of crypto anti-money laundering standards. FATF warned that some illicit actors are also developing proprietary stablecoins designed to resist freezing and asset seizures, underscoring how quickly financial crime tactics are evolving. The watchdog said 83% of surveyed jurisdictions have adopted the Travel Rule into law, up from 73% a year earlier, but many have yet to translate those legal frameworks into effective supervision and enforcement. It also warned that jurisdictions continue to struggle with offshore crypto service providers and with assessing risks tied to DeFi, which it said could become a growing regulatory blind spot.