Read the CySEC Circular C762
Memo #11-2026
CySEC Circular No: C762
Date: 18/03/2026
Subject: FATF Report Targeted Report on Stablecoins and Unhosted Wallets
Purpose: To draw the attention of Regulated Entities for the "FATF Report Targeted Report on Stablecoins and Unhosted Wallets".
In Summary:
CySEC has issued the Circular C762 on 18/03/2026 to inform the Crypto Asset Service Providers, CIFs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs, Companies with sole purpose the management of AIFLNPs, and Small AIFMs under Law 81(I)/2020, that the Financial Action Task Force (the ‘FATF’) published on 03/03/2026 a report entitled ‘Targeted Report on Stablecoins and Unhosted Wallets’ (the ‘Report’).
The Report identifies and analyses of illicit finance risks linked to criminals' misuse of stablecoins, particularly through peer-to-peer (P2P) transactions via unhosted wallets.
The Report further sets out recommended actions for countries and the private sector aimed at enchasing existing controls to safeguard the integrity of the financial system. It highlights how stablecoins' price stability, liquidity and interoperability support their legitimate use while at the same time rendering them attractive for criminal misuse.
With Circular C762, CySEC would like to point that in line with the FATF's 2021 Updated Guidance for a Risk Based Approach to VASPs, Regulated Entities are expected to adequately identify, assess and mitigate the risks associated with the use of stablecoins and unhosted wallets. Furthermore, with regards to the EU Regulation 2023/1113 - Transfer of Funds Regulation where obligations were circulated to the Regulated Entities via C675.
The CySEC urges Regulated Entities to duly take into account the afore-mentioned FATF’s report and to consider the specific money laundering and terrorist financing risks that may arise from such arrangements.
In particular, CySEC notes that Regulated Entities are expected to enhance their understanding of the risks associated with stablecoins and unhosted wallets transfers and to enhance their risk-based approach under the Prevention and Suppression of Money Laundering Activities Law (L. 188(I) 2007) as amended from time to time.
The FATF Targeted Report on Stablecoins and Unhosted Wallets can be found on the following link:
The FATF's 2021 Updated Guidance for a Risk Based Approach to VASPs can be found on the following link:
Read the CySEC Circular C762
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