Fraud
Digital Assets/Crypto
Industry News
Key points include:
➡️ Criminal Misuse of Stablecoins: Stablecoins are increasingly used by cybercriminals, money launderers and terrorist financiers due to their liquidity, price stability and interoperability;
➡️ Unhosted Wallet Risks: Peer-to-peer (P2P) transactions conducted through unhosted wallets can bypass regulated intermediaries such as Virtual Asset Service Providers #VASPs or financial institutions;
➡️ Regulatory Gaps: Only a limited number of jurisdictions have implemented regulatory frameworks addressing the risks posed by stablecoin arrangements;
➡️ Strengthening Controls: FATF calls for full implementation of Recommendation 15, ensuring stablecoin issuers, VASPs and financial institutions are subject to appropriate (AML/CFT) obligations; and
➡️ Risk Mitigation Measures: Recommended controls include blockchain analytics capabilities, smart-contract safeguards, and stronger public-private cooperation.
✅ VASPs should assess exposure to stablecoin-related risks, identify the relevant good practices set out in the report, and implement robust risk-based controls to mitigate emerging stablecoin risks.
