FATF guidance sharpens focus on stablecoins, DeFi and NFTs

By Keith Nuthall

The Financial Action Task Force (FATF) has called on financial institutions and virtual currency operators to take a special look at the money laundering and terrorist financing (ML/TF) risks associated with stablecoins, whose value is linked to a fiat currency, before release given they may be widely acquired and spent. The risks should also be examined in “an ongoing and forward-looking manner,” it said.