---
title: FATF Highlights Illicit Finance Risks in Stablecoins and Wallets
description: FATF Highlights Illicit Finance Risks in Stablecoins and Wallets
---

[News & insights ](https://www.plenitudeconsulting.com/news-insights)

# [FATF Highlights Illicit Finance Risks in Stablecoins and Wallets](https://www.plenitudeconsulting.com/news-insights/fatf-highlights-illicit-finance-risks-in-stablecoins-and-wallets)

 Written by [Insight & Partnership Team](https://www.plenitudeconsulting.com/news-insights/author/insight-partnership-team) | Mar 6, 2026 4:29:26 PM

 

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.

 

[View full post](https://www.plenitudeconsulting.com/news-insights/fatf-highlights-illicit-finance-risks-in-stablecoins-and-wallets)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Insight & Partnership Team"
  },
  "dateModified" : "2026-03-06T16:29:26.858Z",
  "datePublished" : "2026-03-06T16:29:26Z",
  "headline" : "FATF Highlights Illicit Finance Risks in Stablecoins and Wallets",
  "image" : {
    "@type" : "ImageObject",
    "height" : 805,
    "url" : "https://9417247.fs1.hubspotusercontent-na1.net/hubfs/9417247/Income.jpg",
    "width" : 1303
  },
  "mainEntityOfPage" : "https://www.plenitudeconsulting.com/news-insights/fatf-highlights-illicit-finance-risks-in-stablecoins-and-wallets",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "News & insights"
  }
}
```