The Financial Action Task Force (FATF) has identified stablecoins as the most widely used virtual assets in illegal transactions, according to a 42-page report released in March. The report highlights their use by entities in Iran and North Korea to evade sanctions and finance proliferation, urging stricter regulation of stablecoin issuers. FATF estimates that illegal stablecoin activities related to fraud and scams will reach $51 billion in 2024. Citing Chainalysis data, the report notes that stablecoins will account for 84% of the $154 billion in illegal virtual asset transactions in 2025. TRM Labs also projects that illicit entities will receive $141 billion in stablecoins in 2025, with monthly stablecoin transaction volumes exceeding $1 trillion in some months.