FATF Stablecoin Alarm Not A War On Crypto, Intel Firms Say
The Financial Action Task Force (FATF) has raised concerns about the rise of stablecoin-related crimes, emphasizing the need for monitoring rather than restricting their growth. Executives from Chainalysis and Asset Reality assert that the FATF's warning is not anti-crypto but highlights the importance of effective regulation for credibility and growth. Stablecoins account for 63% of illicit crypto transfers, according to Chainalysis. The FATF advocates for uniform licensing, real-time monitoring, and international collaboration to combat illicit activities. It does not call for a ban on stablecoins but seeks enhanced visibility and enforcement, applying Anti-Money Laundering standards to digital assets. Centralized stablecoin issuers can freeze funds linked to illicit use, as demonstrated by Tether's actions against scam-related funds. Investigations have identified Circle's USDC as a primary tool for DPRK IT workers, raising concerns about compliance and detection efforts.
