A recent warning from the Financial Action Task Force (FATF) about increasing stablecoin -related crimes is not threatening the cryptocurrency industry, according to executives at Blockchain Intelligence Firms.
FATF’s call to meet the rising prohibited Stablecoin activity reflects the need for close monitoring and evaluation rather than aimed at hindering their growth, according to executives in chainalysis and asset reality.
The Global Financial Crime Watchdog sound the alarm in Stablecoins Last Thursday, regulators were asking to focus on alleviating risks behind their potential mass adoption.
“That’s not anti-crypto. It’s a recognition that credibility and growth depends on the regulation that really works,” asset co-founder Aidan Larkin told cointelegraph.
Stablecoins make up 63% of prohibited crypto transfers
“Stablecoins is the dominant form of the cryptoasset for the amount of transacting as well as for the practice of illicit activity,” said chainalysis policy Jordan Wain. He noted data from the “2025 Crypto Crime Report” by chainalysis, identified that 63% of all onchain transaction volumes is denominated with stablecoins.
According to Wain, the FATF alarm in Stablecoins aims to promote “more equal licensing and administration of stablecoin providers” in countries, expanding real-time monitoring, and closer international partnerships to monitor, recognize and disrupt the prohibited flows.
“(The) FATF is not calling for a ban on Stablecoins. It calls for visibility and better implementation,” said Asset Reality’s Larkin, adding that it fits the wider approach announced In 2023 for increasing focus focus focus.
“This means applying the same AML (anti-money laundering) standards used in traditional finances in the digital world,” Larkin added.
Monitoring crimes is only part of the equation
Larkin said applying for advanced blockchain intelligence tools is not sufficient for alleviating risks behind a mass adoption of stablecoins.
“Monitoring the onchain behavior is only part of the equation,” he said, and added:
“Implementation in the form of a second penalty is argued by politicians in many constituents to put more onus and responsibility to crypto creatures that deliberately facilitates the penalties for avoiding and using a second sentence in compliance (…)”
Chainalysis’ wain also highlights the natural transparency and traceability of stablecoins, which often makes them “poor choice” for any criminal activity. He emphasized that centralized stablecoin issues also maintain the ability to freeze funds when they find out their forbidden use.
Related: Tether prevents $ 12.3m in USDT tied to the weakening addresses of the tron
“We have seen this ability used in huge impact,” says Wain, referring to Freezing tether and seizing $ 225 million In its USDT (USDT) Stablecoin connected to the SCAM activity at the request of US authorities in 2023.
Zachxbt flags are million -million in USDC’s Circle tied to DPRK
Following FATF’s call for closer investigation of Stablecoin use by the Democratic People’s Republic of Korea (DPRK), some blockchain investigators are no longer unprotected onchain data in search of views.
Crypto Sleuth Zachxbt was taken to X on July 1 to claim that the Public Stablecoin Issuer Circle And its USDC (USDC) Stablecoin is the “main infra that DPRK IT workers use to facilitate payments.”
“I can point out the high eight figs (numbers) in recent quantities,” he said, adding the circle “currently doing nothing to see oi -freeze the activity while proud of compliance.”
Cointelegraph approached the circle for a comment on Zachxbt’s post but did not receive a response at the time of publication.
Circle Froze $ 57 million in USDC in Solana tied to the Libra team to Request a Federal US court in May.
Related: North Korea Crypto Hackers Tap Chatgpt, Malaysia Road Money Siphoned: Asia Express
