Key Highlights

• The Financial Action Task Force (FATF) report shows that stablecoins are now the primary medium for on-chain illicit activities.
• Estimated Losses: The FATF reported approximately $51 billion associated with fraud and scams in 2024.
• Regulatory Compliance: The importance of adhering to the ’travel rule’ was emphasized as a means to combat money laundering and the financing of terrorism.
• The travel rule requires the disclosure of information regarding the parties involved in cross-border transactions. Most jurisdictions are facing challenges in identifying individuals engaged in virtual asset activities.

Cyber crime

Stablecoins have been increasingly popular, aided by the push for regulation within the U.S. and beyond, suggesting a rising acceptance in the financial ecosystem.
The FATF’s insights highlight the duality of innovation and risk as regulations evolve around digital finance.