According to Cointelegraph, the Financial Action Task Force (FATF) warning about the rise of crimes related to stablecoins does not pose a threat to the cryptocurrency industry. Executives from Chainalysis and Asset Reality stated that this reflects a need for close monitoring and analysis of stablecoin activities, rather than restricting its growth.
The FATF calls on countries to strengthen regulations on stablecoin issuers, deploy real-time monitoring, and enhance international cooperation to track and combat illegal flows of funds. Chainalysis policy advisor Jordan Wain pointed out that 63% of on-chain illegal transaction volume is denominated in stablecoins.
Aidan Larkin, co-founder of Asset Reality, stated that the FATF did not call for a ban on stablecoins, but rather for better transparency and enforcement. He emphasized that applying traditional financial anti-money laundering standards to the digital world is necessary.
Blockchain investigator ZachXBT pointed out that Circle's USDC is a primary infrastructure used by North Korean IT workers for payments. Circle had previously frozen $57 million worth of USDC at the request of U.S. courts.
