TechFlow News, March 4: According to a Cointelegraph report, the Financial Action Task Force (FATF), an international anti-money laundering (AML) regulatory body, stated in its latest report that peer-to-peer (P2P) stablecoin transfers conducted via self-custodial wallets have become a critical vulnerability within the cryptocurrency ecosystem, as they can circumvent AML regulations.
FATF emphasized that such transactions can be completed without passing through regulated intermediaries, creating regulatory gaps. The report indicates that in 2025, stablecoins accounted for 84% of the total volume of illicit transactions, making them a primary tool for evading sanctions and other illegal activities. Although blockchain transactions are traceable, the anonymity associated with wallet addresses complicates attribution. FATF urges countries to assess the risks posed by stablecoin arrangements and implement “proportionate” mitigation measures—including enhanced monitoring of interactions between self-custodial wallets and regulated platforms—as well as clarifying the AML obligations of stablecoin issuers and distribution entities.
