The Financial Action Task Force (FATF) said that “stablecoins are the most popular virtual asset used in illicit transactions,” including Iran and North Korea, and therefore calling for stricter oversight of stablecoin issuers in a 42-page report published Tuesday.

In January 2026, the global watchdog said it found stablecoins accounted for most illicit onchain activity. It estimated there was approximately $51 billion in illicit stablecoin activity relating to fraud and scams in 2024.

In its March 2026 report, the task force again warned dollar-pegged tokens have become a key vehicle for illicit finance. It cited a Chainalysis report that said stablecoins accounted for 84% of the $154 billion in illicit virtual asset transaction…