The Financial Action Task Force (FATF) has warned that criminals are increasingly using stablecoins to move illicit funds across blockchain networks.
The watchdog says most identified on-chain criminal activity now involves dollar-backed stablecoins and warns that gaps in regulation continue to create opportunities for illicit finance.
FATF President Elisa de Anda Madrazo stated that offshore virtual asset service providers (oVASPs) create 'blind spots' that criminals exploit to commit fraud and finance terrorism.