Stablecoins now represent the greatest illicit activity in the chain, according to the financial action task group (Fatf).
The massive adoption of Stablecoins will amplify the risks of illicit finance, particularly when it is handled unequally through the jurisdictions of difference, said Fatf in a new report on money laundering and anti -terrorist financing (AML/CFT).
The FATF estimated that there were approximately $ 51 billion in illicit activity in the chain related to fraud and scams in 2024.
Stablecoins, files linked to the value of a traditional financial asset, such as a fiduciary currency, have enjoyed some tail winds in recent months thanks to progress towards the regulation of the sector in the United States, among other places.
The total market capitalization of all the stablecoins exceeded $ 250 billion for the first time earlier this month.
Fatf highlighted the importance of compliance with the “travel rule” to stop money laundering and terrorist financing. The travel rule is a set of requirements on the exchange of information about the creator and the beneficiary of cross -border payments.
Observing that 99 jurisdictions have approved legislation that implements the travel rule or that are in the process of doing so, the FATF said that however they experience difficulties in identifying natural or legal persons who carry out a supplier of virtual asset services (Vasp) activities.
Crypto AML AML specialist said almost all cryptocurrency companies meet the travel rule in a report published in April. Notabene had surveyed 91 Vasps, with 90% saying that they hope to fulfill my half year and all saying that they hoped to be so for the end of the year.
Read more: less than 30% of world jurisdictions have begun to regulate Crypto: Fatf Chief
