FATF Report on Stablecoins and Unhosted Wallets
- Effective date
- Published March 2026
Key requirements
FATF's first dedicated guidance on stablecoins (crypto pegged to traditional currencies like the dollar) and unhosted wallets (personal crypto wallets not held by a regulated firm). Identifies the specific money laundering and terrorism financing risks these pose and raises supervisory expectations. Signals the next phase of FATF crypto supervision focus.
Quick Summary
This FATF report looks at the money laundering and terrorist financing risks linked to stablecoins and unhosted wallets. It explains why these technologies can be attractive to criminals and what regulators and crypto firms should do to manage those risks.
What is it?
Stablecoins are cryptocurrencies designed to keep a stable value by being linked to assets like the US dollar or the euro. Unhosted wallets are personal crypto wallets that people control themselves instead of using a crypto exchange or another regulated company. This report is FATF's first publication focused entirely on these two areas. It explains the risks they create and highlights what countries, regulators, and crypto businesses should be doing to reduce those risks.
Who does it apply to?
- Financial institutions
- Crypto Asset Service Providers (CASPs)
- Regulators
- Supervisory authorities
- AML and compliance professionals
Why does it matter?
As more people use stablecoins and personal crypto wallets, criminals may also try to use them to move or hide illegal money. FATF wants countries and crypto firms to understand these risks and strengthen their controls before the problems become bigger.
What should firms do?
- Review whether their AML risk assessment covers stablecoins and unhosted wallets.
- Update customer due diligence (CDD) procedures where higher risks are identified.
- Strengthen transaction monitoring to detect suspicious crypto activity.
- Use blockchain analytics or other appropriate tools to help identify higher-risk transactions where applicable.
- Monitor future FATF guidance and ensure internal AML controls keep pace with new regulatory expectations.
- Train staff on the risks associated with stablecoins and unhosted wallets.