The Financial Action Task Force (FATF) published a report on stablecoins, non-custodial wallets, and P2P transactions. According to the regulator, transaction models operating without exchanges or custodial services create gaps in AML controls: wallet-to-wallet transfers occur outside regulated intermediaries that are required to report suspicious activity.
FATF urged jurisdictions to assess the risks of different stablecoin models and to implement proportionate supervisory measures. These include enhanced monitoring of transactions when self-custody wallets interact with regulated platforms, as well as clearer requirements for stablecoin issuers and distributors.
Separately, the regulator noted that transactions on public blockchains remain traceable on-chain. However, the anonymity of addresses makes it harder to identify participants and detect suspicious activity.