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Most Illicit On-Chain Activity Now Involves Stablecoins: FATF
Mass adoption of stablecoins will amplify illicit finance risks, particularly when it is handled unevenly across difference jurisdictions, the FATF said
Updated Jun 26, 2025, 2:39 p.m. Published Jun 26, 2025, 2:00 p.m.
What to know:
- Stablecoins now account for most on-chain illicit activity, according to the Financial Action Task Force.
- The FATF estimated there was approximately $51 billion in illicit on-chain activity relating to fraud and scams in 2024.
- The FATF highlighted the importance of "travel rule" compliance in curbing money laundering and terrorist financing.
Stablecoins now account for most illicit on-chain activity, according to the Financial Action Task Force (FATF).
Mass adoption of stablecoins will amplify illicit finance risks, particularly when it is handled unevenly across difference jurisdictions, the FATF said in a new report about anti-money laundering and counter-terrorist financing (AML/CFT).
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The FATF estimated there was approximately $51 billion in illicit on-chain activity relating to fraud and scams in 2024.
Stablecoins, tokens pegged to the value of a traditional financial asset such as a fiat currency, have been enjoying some tailwinds in recent months thanks to progress toward regulation of the sector in the U.S., amongst other places.
The total market cap of all stablecoins surpassed $250 billion for the first time earlier this month.
The FATF highlighted the importance of "travel rule" compliance in curbing money laundering and terrorist financing. The travel rule is a set of requirements on the sharing of information about the originator and beneficiary of cross-border payments.
Noting that 99 jurisdictions have passed legislation implementing the travel rule or are in the process of doing so, the FATF noted that they nevertheless experience difficulties in identifying natural or legal persons that conduct virtual asset service provider (VASP) activities.
Crypto AML specialist Notabene said it expected almost all cryptocurrency firms to be compliant with the travel rule in a report published in April. Notabene had surveyed 91 VASPs, with 90% saying they expect to be fully compliant my midyear and all saying they expected to be so by the end of the year.
Read more: Fewer Than 30% of Jurisdictions Globally Have Started Regulating Crypto: FATF Chief
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U.S. Regulator Pushes Back on Banks Fighting Crypto's Pursuit of Trust Charters
Comptroller of the Currency Jonathan Gould spoke at an industry event in Washington, arguing that the OCC won't resist crypto because of banker complaints.
What to know:
- Comptroller of the Currency Jonathan Gould delivered some pushback to the traditional banks that have tried to slow the industry's entry into banking.
- Up to 14 companies have applied for bank charters in the past year, including a number of crypto firms, Gould said.
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