Part 13/14:
The FATF emphasizes the need for all jurisdictions to enforce AML and CFT obligations across the stable coin ecosystem, including issuing entities, custodians, and intermediaries. Implementing measures like transaction limits, requiring pending transaction approval, and smart contract-based asset freezes are among the strategies proposed.
However, the report recognizes the delicate balance between regulation and privacy. Overregulation could stifle innovation and drive users toward decentralized or encrypted alternatives, potentially creating a dystopian future where financial privacy is entirely compromised.