A new report from the Financial Action Task Force (FATF) warns that peer-to-peer (P2P) stablecoin transfers are becoming a major source of money-laundering risk in the crypto ecosystem.
The risk is particularly significant when users transact through unhosted wallets, where the absence of regulated intermediaries makes transactions harder to trace.
According to blockchain analytics firm Chainalysis, about 84% of the $154 billion in illicit crypto transactions recorded in 2025 involved stablecoins.
Stablecoins such as Tether (USDT) and USD Coin (USDC) are increasingly favored by criminal networks due to their price stability, high liquidity, and efficiency in cross-border transfers.
FATF also noted that cybercrime groups are using stablecoins to launder illicit proceeds before converting them into fiat currency through OTC brokers or P2P platforms.
To address these risks, FATF recommends stronger oversight of stablecoin issuers and the ability to freeze or blacklist suspicious addresses.
In this context, Know Your Transaction (KYT) tools are becoming essential for crypto compliance. Solutions such as Trustformer KYT from Trustformer help monitor on-chain fund flows and identify high-risk transactions, strengthening AML controls for crypto businesses.