Stablecoins Under Scrutiny as Crime Concerns Grow, Say Analysts
As stablecoins gain traction in the global financial ecosystem, so too does their misuse.
A recent alert from the Financial Action Task Force (FATF) has reignited debate around how to manage the risks without stifling innovation. But according to leading crypto intelligence experts, the solution lies in balanced regulation — not restrictions.
Instead of calling for bans, FATF’s latest warning highlights the need for better tracking and supervision of stablecoin activity, particularly in the face of growing illicit usage. Data from Chainalysis shows that these assets were used in over 60% of on-chain crime in 2025 — a reflection of their widespread utility, both legitimate and otherwise.
Experts argue that this trend underscores the importance of bringing digital assets under the same anti-money laundering standards as traditional finance. Asset Reality co-founder Aidan Larkin described the FATF approach as “pro-structure, not anti-crypto,” emphasizing the necessity of rules that ensure safety without hindering adoption.
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However, simply monitoring blockchain transactions isn’t enough. Larkin pointed out that enforcement mechanisms, like secondary sanctions, may be needed to hold service providers accountable when they knowingly facilitate illicit transfers.
The issue of stablecoin misuse was further spotlighted by crypto investigator ZachXBT, who alleged that North Korean-linked IT workers have been using USDC to funnel large sums — claims he says are backed by on-chain data. He also criticized stablecoin issuers for not taking stronger preventive measures.
While tools like asset freezing have been used effectively in the past, experts say a consistent global framework is still lacking. The broader message: stablecoins aren’t the problem — the absence of unified, enforceable oversight is.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
